The iShares Ethereum Trust (ETHA) ETF from BlackRock has become the first Ethereum ETF to surpass $1 billion in cumulative net inflows.
Impressive Milestone for BlackRock’s Ethereum ETF
BlackRock announced that its iShares Ethereum Trust (ETHA) has become the first Ethereum ETF to reach over $1 billion in cumulative net inflows. This achievement places the fund at the top among the 11 issuers of such financial products, cementing BlackRock’s position as a leader in the crypto ETF market.
Currently, BlackRock’s ETHA fund manages over $860 million in net assets, ranking just behind Grayscale’s Ethereum trusts, namely the Ethereum mini ether trust (ETH) and the Ethereum trust (ETHE). Notably, ETHA’s net inflows surpass those of the three next best-performing ETFs combined.
Comparison with Other Ethereum ETFs
The performance of other Ethereum ETFs pales in comparison to ETHA. For example, Fidelity’s FETH fund has attracted $367 million since its launch on July 23, while Bitwise’s ETHW fund has recorded $310 million. The new Grayscale fund (ETH), despite its market importance, has accumulated only $227 million in net inflows.
On the other hand, some other Ethereum ETFs struggle to attract significant capital, with less than $60 million in net inflows recorded by competing funds. Grayscale’s Ethereum trust (ETHE), despite being converted from an institutional product to one open to the general public, has experienced massive net outflows of $2.7 billion since its inception.
A Broader Context: Performance of Bitcoin ETFs
Interestingly, despite ETHA’s success, Ethereum ETFs, as a whole, have underperformed compared to their Bitcoin counterparts. Cumulative net outflows for all Ethereum ETFs amount to over $440 million. In comparison, Bitcoin ETFs, notably BlackRock’s Bitcoin fund, have seen daily net inflows of around $125 million during their first month of existence, reaching a total valuation of over $11 billion after deducting net outflows from the Grayscale Bitcoin Trust (GBTC).
BlackRock’s Bitcoin fund has managed to rank among the top five ETFs in terms of net inflows for 2024 across all sectors. This record puts the fund on par with industry giants like the iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO) during a record-breaking year in the ETF market.
