BlackRock Ethereum ETF Exceeds $1 Billion in Net Inflows

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BlackRock’s iShares Ethereum Trust, also known as ETHA, has become the first U.S.-based Ethereum exchange-traded fund (ETF) to hit $1 billion in net inflows, Farside Investors data shows.

This marks a significant milestone, although the fund follows the initial performance of BlackRock’s iShares Bitcoin Trust (IBIT), which crossed the $1 billion mark in just four days. Despite the slower pace compared to Bitcoin ETFs, demand for Ethereum-based funds like ETHA is growing, although not at the same explosive rate as its Bitcoin counterparts.

The $1 billion milestone was set after ETHA raised $26.8 million on August 20. Data from Farside shows that only the BlackRock ETF and Bitwise’s Ethereum (ETHW) fund gained on Tuesday, while other competitive ETFs, excluding Grayscale’s ETHE, reported zero flows.

Investors have pulled about $2.5 billion from Grayscale’s ETHE since it was converted into an ETF. Similar to its Bitcoin counterpart, the fund charges relatively high fees compared to other investment options.

While ETHE has consistently seen negative inflows since its debut, outflows appear to have slowed recently.

Withdrawals peaked at $484 million on the fund’s first day of trading, followed at a similar pace during the first week, but slowed earlier this month. The lowest outflows were recorded last Wednesday at $16.9 million.

BlackRock’s Ethereum and Bitcoin ETFs recently surpassed Grayscale’s in assets under management for the first time, with a marginal lead in their collective holdings.

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