BlackRock's Ethereum ETF Surpasses $1 Billion in Net Inflows

BlackRock’s iShares ethereum Trust, also known as ETHA, has become the first US spot ethereum exchange-traded fund (ETF) to achieve $1 billion in net inflows, according to Farside Investors. eth/” rel=”noopener nofollow noreferrer”>data sample.

This marks a significant milestone, though the fund lags behind the early performance of BlackRock’s iShares bitcoin Trust (IBIT), which surpassed 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, though not at the same explosive rate as their bitcoin counterparts.

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

Investors have withdrawn approximately $2.5 billion from Grayscale's ETHE since it became an ETF. Like its bitcoin counterpart, the fund charges relatively high fees compared to other investment options.

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

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