Bitcoin News Today: BlackRock’s Ethereum ETF hits $10B in 251 days, third-fastest after Bitcoin peers

BlackRock’s Ethereum ETF (ETHA) has surged to $10 billion in assets in 251 days, becoming the third-fastest ETF to reach this threshold after BlackRock’s Bitcoin ETF (34 days) and Fidelity’s Bitcoin fund (53 days) [1]. Despite a muted initial reception for Ethereum ETFs compared to Bitcoin’s January 2024 launch—when ETH funds debuted with $1 billion in volume versus Bitcoin’s $4.5 billion—the product now appears to be gaining traction. Analysts suggest regulatory approvals for in-kind redemption and creation of shares, allowing investors to exchange BTC or ETH for ETF units, could further accelerate growth. However, regulators remain cautious, citing potential security risks in crypto-based fund structures [2].

Meanwhile, MicroStrategy (formerly Strategy) continues its aggressive Bitcoin accumulation strategy. The company recently expanded its preferred stock offering to $2.5 billion, up from an initial $500 million, to fund additional Bitcoin purchases. With a current holding of 607,770 Bitcoin valued at $70.6 billion and a 1,519.17% unrealized profit, MicroStrategy faces legal scrutiny. A class-action lawsuit alleges shareholders should have been allowed to vote on amended terms of its preferred stock offering, while another case awaits a lead plaintiff decision by July 15 [3].

MARA Holdings, a Bitcoin miner, saw its shares drop 12% after announcing a $950 million debt raise, a significant increase from its original $850 million plan. The funds will fund operations, acquisitions, and debt repayment, not solely Bitcoin purchases. MARA’s $5.8 billion in Bitcoin holdings nearly matches its $6 billion market cap, raising questions about its capital allocation strategy. Compass Point analyst Ed Engel upgraded MARA from Sell to Neutral, citing Bitcoin’s performance and the company’s “HODL strategy” of retaining Bitcoin rather than liquidating it. However, Engel warned of seasonal volatility in August and noted MARA has yet to disclose returns from its yield-generating Bitcoin strategies [4].

Other developments include JPMorgan potentially allowing clients to use Bitcoin and Ethereum as loan collateral, despite CEO Jamie Dimon’s past dismissal of crypto as a “fraud.” XRP’s market cap fluctuated sharply, peaking near McDonald’s’ valuation before retreating to $181 billion [5].

The crypto market’s institutional adoption momentum remains evident, with ETFs and corporate strategies reshaping asset dynamics. However, legal and regulatory uncertainties persist as key risks for investors.

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