Key Points
- BlackRock’s spot Ethereum ETF surpasses $1 billion in total asset value just two months after launch, joining the top 20% of US ETFs.
- US-based spot Ethereum ETFs log their highest weekly inflows since early August, totaling $84.5 million and breaking a six-week streak of net outflows.
ETF Market Sees Resurgence in Ethereum Interest
In a significant turn of events for the cryptocurrency investment landscape, US-based spot Ethereum exchange-traded funds (ETFs) have reported their most substantial weekly inflows since early August. This surge in interest comes after a prolonged period of six consecutive weeks marked by negative outflows, signaling a potential shift in investor sentiment towards Ethereum-based financial products.
Per SoSoValue, the week ending September 28, 2024 saw net positive inflows totaling approximately $84.5 million across various Ethereum ETFs. This reversal of trend has caught the attention of market analysts and investors alike, as it may indicate renewed enthusiasm for Ethereum and crypto-based investment vehicles.
BlackRock’s ETHA Fund Achieves Milestone
Among the standout performers, BlackRock’s ETHA fund has reached a significant milestone by surpassing $1 billion in total asset value. This achievement comes just two months after the fund’s launch, positioning it as the second Ethereum-based ETF to reach this valuation after Grayscale’s Ethereum Mini Trust.
Nate Geraci, president of The ETF Store, highlighted the significance of this accomplishment, noting that BlackRock’s fund now ranks within the top 20% of over 3,700 ETFs available in the US market. This rapid growth underscores the increasing mainstream acceptance of cryptocurrency-based investment products.
Breakdown of ETF Performances
While BlackRock’s fund grabbed headlines with its billion-dollar valuation, other ETFs also showed strong performance:
- Fidelity’s FETH fund led Friday’s inflows with $42.5 million
- BlackRock’s ETHA followed with $11.5 million in inflows
- Bitwise’s ETHW, Invesco’s QETH, Grayscale’s ETH, VanEck’s ETHV, and 21Shares’ CETH all reported positive inflows
Notably, Franklin’s EZET maintained a neutral position with no net inflow or outflow, while Grayscale’s ETHE experienced outflows of $10.7 million.
The positive trend was not limited to a single day, with three out of five trading days last week resulting in net positive inflows for Ethereum funds. This consistent performance has led to a total net asset value of $7.4 billion across all funds, marking the highest value since August 26.
As the cryptocurrency market continues to evolve, the success of these Ethereum ETFs may serve as a barometer for broader institutional and retail interest in digital assets. Investors and industry observers will be closely watching to see if this trend of positive inflows continues, potentially signaling a new phase of growth for cryptocurrency-based financial products.
