BlackRock’s Ethereum ETF Hits $10B AUM, Doubling in Just 10 Days
iShares Ethereum Trust (ETHA) has hit $10B in assets under management (AUM) in less than a year since its 2024 launch.
Quick overview
- iShares Ethereum Trust (ETHA) reached $10B in assets under management in under a year, marking the fastest growth for an Ethereum-focused ETF.
- ETHA's assets doubled from $5B to $10B in just 10 days, making it the third fastest ETF to reach this milestone in US history.
- Ethereum ETFs, particularly ETHA, are experiencing significant inflows, with $4.7B in the last month, surpassing Bitcoin ETFs in recent inflow comparisons.
- BlackRock is seeking approval to allow staking in ETHA, potentially transforming it into a yield-generating investment for income-focused investors.
iShares Ethereum Trust (ETHA) has hit $10B in assets under management (AUM) in less than a year since its 2024 launch. And get this, ETHA went from $5B to $10B in 10 days according to Bloomberg ETF analyst Eric Balchunas who tweeted this out on July 23.
That’s the fastest to $10B for an Ethereum focused ETF and the 3rd fastest overall in US history behind only the iShares Bitcoin Trust and Fidelity’s FBTC. ETHA is now in the top 5 for one week and one month inflows.
ETHA launched shortly after the US SEC approved it along with 7 other Ethereum ETFs. BlackRock filed for the product in November 2023 and chose Coinbase Prime as the custodian. The ETF tracks the market price of Ether minus expenses and has a 0.25% sponsor fee.
Ethereum ETFs Surpass Bitcoin
While Bitcoin ETFs still have more total assets, Ethereum ETFs especially ETHA are growing fast. According to SoSoValue data, Ethereum ETFs saw $4.7B in inflows over the last month. On July 17 alone, Ethereum ETFs saw $602M in inflows vs $523M for Bitcoin ETFs.
This is a shift in institutional sentiment towards Ethereum’s evolving use case in DeFi and its proof of stake mechanism which is considered more energy efficient and future facing than Bitcoin’s proof of work.
ETF Inflow Comparison (July 17)
Analysts say this is a sign of increasing confidence in Ethereum’s long term utility and regulatory clarity especially after the SEC ruled that staking rewards are income not securities.
BlackRock Eyes Ethereum Staking
And one more piece of momentum, BlackRock has filed to allow staking in ETHA which would allow the ETF to earn passive yield by locking up a portion of its Ethereum holdings. If approved this would be the first US ETF to offer staking based returns a big step in merging traditional finance with blockchain functionality.Staking would turn Ethereum ETFs from price trackers into yield generators, more attractive to income investors. SEC decision expected later this year and many think it will be approved given recent regulatory moves.
As Ethereum ETFs are taking off, ETHA’s growth is a sign the market is moving beyond just Bitcoin.
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