BlackRock’s Ethereum ETF Reaches $10 Billion in Record Time, Making It the Third Fastest ETF Ever
BlackRock’s iShares Ethereum Trust has reached $10 billion in assets under management, merely one year after its launch.
Summary
- BlackRock’s iShares Ethereum ETF has surpassed $10 billion in assets, just over a year following its introduction.
- This makes it the third-fastest ETF in U.S. history to reach this milestone, following two Bitcoin ETFs.
- In July, there was substantial growth in inflows into ETH, with Ethereum ETFs occasionally outperforming their Bitcoin counterparts.
This milestone positions ETHA as the fastest non-Bitcoin ETF to achieve this level and the third overall in U.S. ETF history, trailing only the iShares Bitcoin (BTC) Trust and Fidelity’s FBTC.
The accomplishment was highlighted on July 23 by Bloomberg ETF analyst Eric Balchunas, who shared on X that ETHA doubled its assets from $5 billion to $10 billion in just 10 days. He stated, “It went from $5B to $10B in just 10 days,” emphasizing ETHA’s remarkable inflow trajectory. ETHA also ranks among the top five ETFs for inflows over one-week and one-month periods.
The increasing interest from investors in Ethereum-related products, along with heightened institutional demand, have been key drivers behind ETHA’s asset growth.
ETHA was introduced in early 2024, following its approval by the U.S. Securities and Exchange Commission alongside seven other spot Ethereum (ETH) ETFs. BlackRock filed for this product in November 2023, designating Coinbase Prime as its custodian. The ETF carries a 0.25% sponsor fee and tracks the market price of Ether, excluding expenses and liabilities.
Ethereum ETFs outpace Bitcoin ETFs in growth
Data from SoSoValue shows that Ethereum ETFs have seen impressive monthly inflows totaling $4.7 billion, with ETHA leading in both volume and growth rate. On July 17, Ethereum ETFs collectively attracted $602 million in net inflows, exceeding Bitcoin ETFs, which saw $523 million on the same day.
This trend, analysts argue, reflects a burgeoning confidence in the long-term value of Ethereum, which benefits from its proof-of-stake architecture and its crucial role in decentralized finance.
BlackRock has filed an application to enable staking in ETHA, which would involve locking up a portion of its Ethereum assets to earn yield. A recent SEC decision clarified that staking rewards are considered income rather than securities, potentially facilitating approval later this year.
While Bitcoin funds continue to dominate in total inflows, Ethereum ETFs are experiencing more rapid growth thanks to their exposure to DeFi and the possibility of staking returns.