BlackRock Ethereum ETF is on track to hit $1 billion in net inflows

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BlackRock’s Ethereum fund (ETF), the iShares Ethereum Trust, could become the first US spot Ethereum fund to hit $1 billion in net inflows. The ETF, trading under the symbol ETHA, has netted about $901 million just three weeks after launch and is on track to hit the target, Farside Investors data shows.

Nate Geraci, president of The ETF Store, is confident that ETHA will reach $1 billion in flows this week, adding that it is one of the top six most successful ETF launches of the year.

The iShares Ethereum ETF raised more than $900 million

Pretty much a lock to hit *$1 billion* this week IMO.

As mentioned before, ETHA already top 6 launch of 2024 (other 4 out of 5 are btc spot ETFs).

— Nate Geraci (@NateGeraci) August 12, 2024

BlackRock’s fund that offers direct exposure to Bitcoin (BTC), the iShares Bitcoin Trust, or IBIT, was the first spot Bitcoin ETF to hit $1 billion in inflows. Due to consistent and massive inflows, the ETF took just four days to cross the mark.

BlackRock’s ETF data indicates a slower accumulation rate for Ethereum compared to Bitcoin. Demand for Ethereum ETFs, while growing, has yet to match the level of interest seen in Bitcoin ETFs. However, it is not completely unexpected.

Martin Leinweber, Director of Digital Asset Research & Strategy at MarketVector Indexes, previously said he expected more modest inflows into Ethereum ETFs compared to the substantial inflows seen with Bitcoin ETFs, which have attracted billions in a short time.

Popular Bloomberg ETF analyst Eric Balchunas has estimated that demand for Ethereum spot ETFs may be around 15% to 20% of what is seen in Bitcoin ETFs. Its projection came after the landmark approval of these products in May.

BlackRock’s ETHA might be the fastest-growing spot Ethereum ETF, but Grayscale’s rival fund, Grayscale Ethereum ETF (ETHE), still dominates assets under management despite suffering outflows of nearly 2.3 billions of dollars since it was converted from a trust.

ETHE currently holds $4.9 billion worth of Bitcoin, while ETHA has over $761 million in assets under management (AUM). At the current rate of accumulation, ETHA may soon overtake ETHA in AUM.

There is a possibility that ETHA will lead the Ethereum ETF market, but more observations are needed, especially when Grayscale has already offered its Ethereum Mini Trust.

The spin-off was seeded with 10% of the trust’s holdings and now has $935 million in AUM. Despite the substantial capital in the low-cost fund, its net inflows are still modest compared to BlackRock’s ETHA inflows.

BlackRock’s IBIT has overtaken Grayscale’s Bitcoin ETF (GBTC) to become the largest Bitcoin spot fund in terms of Bitcoin holdings. As of today, the fund holds approximately 348,000 BTC, valued at approximately $21 billion.

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