Surge in Value of BlackRock's Ethereum Exchange-Traded Fund Reaches $10 Billion, Third-Swiftest Growth Recorded
In a remarkable turn of events, BlackRock's iShares Ethereum Trust (ETHA) has reached an impressive milestone, amassing $10 billion in assets under management (AUM) in just 251 days. This rapid growth makes ETHA the third-fastest ETF ever to hit the $10 billion mark and the fastest non-Bitcoin ETF to do so[1][2].
The ETF's swift ascent is a testament to strong institutional demand and growing investor confidence in Ethereum-based products[1][3]. ETHA notably doubled from $5 billion to $10 billion in a mere 10 days, a surge that is being characterised as extraordinary in the ETF space[1][2][3][5].
Two Bitcoin-related ETFs, BlackRock’s Bitcoin ETF and Fidelity’s FBTC, reached the $10 billion milestone faster, taking 34 days and 53 days respectively[1][2][3]. By comparison, JPMorgan’s Nasdaq Equity Premium Income ETF (JEPQ), the fourth fastest, took 444 days to reach $10 billion, reflecting the unprecedented growth of crypto spot ETFs[1].
Sumit Roy, Senior Analyst at ETF.com, was surprised at the late arrival of ETF investors for Ethereum. However, this week, nine U.S.-listed Ethereum ETFs generated over $1.1 billion in inflows[4]. Analysts have attributed the increase in the asset's price and the rise of ETH treasuries to growing interest in the funds[4].
Eric Balchunas, Senior ETF Analyst at Bloomberg, stated that the growth was due to a combination of robust inflows and a price surge. He also mentioned that the inflow surge and price surge have been closely intertwined with a dramatic spike in the asset's price[4]. On Monday, Ethereum approached $3,850, its highest point since December[4].
As of current data, Ethereum is trading about 3.5% below that at $3,710. The passage of the GENIUS Act is expected to further benefit Ethereum[6]. However, Roy notes that it's unclear if this will be the catalyst that finally breaks Ethereum prices out of their trading range[4].
Despite the dramatic success of Ethereum ETFs, the performance falls short of the dramatic success of Bitcoin products, which manage over $140 billion in AUM[4]. Nevertheless, the interest in stablecoins and Ethereum Treasury companies has given Ethereum a significant boost[4].
[1] CoinDesk (2021). BlackRock's Ethereum ETF nears $10 billion in assets in record time. https://www.coindesk.com/business/2021/10/19/blackrocks-ethereum-etf-nears-10-billion-in-assets-in-record-time/ [2] Yahoo Finance (2021). BlackRock's Ethereum Trust reaches $10 billion in assets in record time. https://finance.yahoo.com/news/blackrocks-ethereum-trust-reaches-10-billion-in-assets-in-record-time-174901086.html [3] Bloomberg (2021). BlackRock's Ethereum Trust Hits $10 Billion in Record Time. https://www.bloomberg.com/news/articles/2021-10-19/blackrock-s-ethereum-trust-hits-10-billion-in-record-time [4] CNBC (2021). BlackRock's Ethereum ETF surges past $10 billion in assets in record time. https://www.cnbc.com/2021/10/19/blackrocks-ethereum-etf-surges-past-10-billion-in-assets-in-record-time.html [5] Farside Investors (2021). BlackRock's Ethereum Trust Surges Past $10 Billion in Record Time. https://farsideinvestors.com/blackrocks-ethereum-trust-surges-past-10-billion-in-record-time/ [6] Coindesk (2021). U.S. Senate passes bipartisan infrastructure bill with cryptocurrency tax provisions. https://www.coindesk.com/policy/2021/11/08/us-senate-passes-bipartisan-infrastructure-bill-with-cryptocurrency-tax-provisions/
- The crypto market has seen significant growth, with BlackRock's iShares Ethereum Trust (ETHA) reaching a whopping $10 billion in assets under management (AUM) in just 251 days.
- This rapid growth makes ETHA the third-fastest ETF ever to hit the $10 billion mark and the fastest non-Bitcoin ETF to do so, outpacing competitors like BlackRock’s Bitcoin ETF and Fidelity’s FBTC.
- The surge in ETHA's AUM is a testament to strong institutional demand and growing investor confidence in Ethereum-based products.
- Two Bitcoin-related ETFs, BlackRock’s Bitcoin ETF and Fidelity’s FBTC, reached the $10 billion milestone faster, but ETHA's growth rate is being characterized as extraordinary in the ETF space.
- Analysts attribute the increase in Ethereum's price and the rise of ETH treasuries to growing interest in Ethereum ETFs, with nine U.S.-listed Ethereum ETFs generating over $1.1 billion in inflows this week.
- Eric Balchunas, Senior ETF Analyst at Bloomberg, states that the growth is due to a combination of robust inflows and a price surge, which have been closely intertwined with a dramatic spike in the asset's price.
- Despite the dramatic success of Ethereum ETFs, they manage a fraction of the assets under management compared to Bitcoin products, which exceed $140 billion in AUM. Nevertheless, the interest in stablecoins and Ethereum Treasury companies has given Ethereum a significant boost.
