BlackRock’s iShares Ethereum Trust (ETHA) continues to dominate the nascent spot Ether ETF market, drawing massive inflows even amid market volatility.
Just 11 days after its launch on July 23, ETHA has already amassed nearly $900 million in assets under management. The fund saw a staggering $109.9 million inflow on August 6 alone, marking its third-largest flow day, according to data from Farside Investors.
This surge in demand comes on the heels of Ether’s 18% price plunge on August 5, suggesting investors are using the ETF as a vehicle to gain exposure to the world’s second-largest cryptocurrency without the complexities of direct ownership.
Nate Geraci, President of The ETF Store, highlights the fund’s exceptional performance, placing it among the top six best-performing ETFs launched in 2024. Notably, four of the top five are spot Bitcoin ETFs, underscoring the growing appetite for crypto exposure through traditional investment channels.
Even the crypto market’s “Black Monday,” which saw a dramatic wipeout of leveraged long positions, couldn’t dampen ETHA’s momentum. The fund attracted $47.1 million on that day, solidifying its position in the top 10% of all ETFs launched this year.
This remarkable success is achieved without offering additional features like staking returns or options trading, commonly found in other crypto investment products.
While ETHA steals the spotlight, the overall spot Ether ETF market is gaining traction. On August 6, the combined inflows for all spot Ether ETFs reached $98.4 million, excluding their launch day. Fidelity’s spot Ethereum ETF and Grayscale’s Ethereum Mini Trust also saw significant inflows.
Also Read: BlackRock Bets On Bitcoin – $683M Buy Contrasts $3.75B ETF Dump
However, the picture isn’t entirely rosy. Grayscale’s larger Ethereum product, ETHE, experienced an outflow of $39.7 million, highlighting the competitive landscape. Moreover, when factoring in the massive $2.2 billion outflow from ETHE, the combined net outflow for all spot Ether ETFs still stands at $473.9 million.
As the market stabilizes and Ether’s price recovers, the spotlight on spot Ether ETFs is likely to intensify. Whether this momentum can be sustained remains to be seen, but the early signs point to a burgeoning interest in institutional-grade crypto exposure.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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