Bitcoin News Today: BlackRock's Ethereum ETF hits $10B in 251 days as MicroStrategy plans $2.5B Bitcoin purchase

Ethereum’s institutional appeal continues to grow as the BlackRock iShares Ethereum Trust (ETHA) nears $10 billion in assets under management (AUM) within 251 days, becoming the third-fastest ETF to reach this benchmark [1]. This milestone, while slower than Bitcoin ETFs’ pace, underscores robust investor demand for Ethereum-based products. The fund’s sustained growth, despite an initial $1 billion trading volume compared to Bitcoin ETFs’ $4.5 billion, signals maturation in the Ethereum ETF market [1]. Analysts speculate that potential SEC approval for in-kind redemption mechanisms—allowing direct crypto transactions with ETF shares—could further boost liquidity and align fund operations with underlying assets, though regulatory caution remains due to security risks [1].

Simultaneously, MicroStrategy’s aggressive Bitcoin acquisition strategy is gaining momentum. The company plans to raise $2.5 billion via its Stretch preferred stock offering, expanding its Bitcoin holdings beyond 607,000 BTC, valued at $70.6 billion, with a 1,519% unrealized gain [1]. This follows an initial $500 million target, reflecting sustained institutional conviction in Bitcoin’s long-term value. However, legal challenges loom, including a class-action lawsuit alleging insufficient shareholder voting rights on preferred stock amendments and another scrutinizing executive disclosures about treasury risks [1]. These cases highlight regulatory and reputational risks investors must monitor.

In contrast, MARA Holdings’ $950 million debt raise triggered a 12% stock decline, signaling market concerns over miner leverage. While MARA plans to allocate proceeds to working capital, acquisitions, and debt repayment—rather than Bitcoin purchases—its $5.8 billion in Bitcoin assets nearly matches its $6 billion market cap [1]. Compass Point analyst Ed Engel upgraded MARA to Neutral, citing Bitcoin’s price strength and the company’s HODL strategy, but emphasized the need for transparent ROI metrics to validate its approach [1].

Broader market dynamics include JPMorgan’s exploration of Bitcoin and Ethereum as collateral for client loans, signaling mainstream financial integration, while XRP’s volatile market capitalization briefly outperformed major corporations before retreating [1]. These developments reflect a maturing crypto ecosystem where institutional adoption and regulatory scrutiny interplay. Investors are advised to monitor regulatory shifts, corporate capital strategies, and market sentiment as crypto financing avenues expand.

Source: [1] [Ethereum ETF Nears $10B Milestone as MicroStrategy Plans Potential $2.5B Bitcoin Purchase] [https://en.coinotag.com/ethereum-etf-nears-10b-milestone-as-microstrategy-plans-potential-2-5b-bitcoin-purchase/].