BlackRock's $137.1 Million Ethereum Purchase Drives Record ETF Inflows

BlackRock, the world's largest asset manager, has made a significant move into the cryptocurrency market by purchasing $137.1 million worth of Ethereum (ETH) through the iShares Ethereum Trust (ETHA). This substantial investment signals a strong bullish sentiment towards the digital asset, which has been gaining traction among institutional investors. The purchase by BlackRock contributed heavily to a new inflow record, with ETHA attracting over $300 million in capital on Thursday alone, marking the fund’s biggest single-day total since launch. Consequently, it brought ETHA’s weekly inflows to $629 million, underlining a massive confidence boost in Ethereum.

Moreover, Thursday’s activity was the second-highest single-day net inflow across all Ethereum ETFs since July 2024. U.S.-listed Ethereum spot ETFs brought in nearly $908 million in net inflows just this week. Hence, institutional investors are clearly positioning themselves ahead of what could be another Ethereum breakout. This trend is not a shift away from Bitcoin but rather a sign of the crypto space maturing. Institutional investors are increasingly recognizing the potential of Ethereum to power decentralized applications, DeFi protocols, and NFTs.

Besides ETHA’s strong showing, other Ethereum-focused ETFs also saw major inflows. Fidelity’s FETH pulled in $37.3 million, while Grayscale’s ETH and ETHE products gathered $20.7 million and $18.9 million, respectively. Additionally, Bitwise’s ETHW brought in $3.2 million and VanEck’s ETHV added $2.1 million. Most of this activity came on Thursday, which emerged as the busiest trading day of the week. ETF inflows cooled slightly by Friday, but still reached a solid $204 million. Grayscale led the day with $25 million for ETH and $10 million for ETHE. Fidelity followed with $12 million in FETH inflows. Bitwise, 21Shares, and VanEck also recorded healthy contributions.

Furthermore, trading data between June 23 and July 11 reflected clear trends in volume distribution. ETHA and FETH led the way, with ETHA topping 300 units on July 10. In contrast, most other Ethereum derivatives saw either minimal or zero daily volume. Sporadic activity occurred in products like ETHW and ETHE, especially on high-volume days. Despite fluctuating volumes, fee structures across platforms remained steady. Most charged between 0.15% and 2.50% per transaction.

The surge in stablecoin demand has been a driving force behind the increased interest in Ethereum. The Ethereum blockchain supports most stablecoin infrastructure, making it a critical component of the cryptocurrency ecosystem. This trend is not a shift away from Bitcoin but rather a sign of the crypto space maturing. Institutional investors are increasingly recognizing the potential of Ethereum to power decentralized applications, DeFi protocols, and NFTs.

Other major institutions, including Grayscale, Fidelity, Big digital, and Bitwise, have also been making purchases of ETH in recent months. Following SharpLink Gaming's lead, Nasdaq-listed GameSquare unveiled their $100 million Ethereum Treasury Strategy. This bullish behavior may also indicate anticipation for a possible ETF approval, following the success of Bitcoin ETFs. The growing confidence in Ethereum's long-term value is evident in the record whale accumulation, low exchange reserves, and a growing staking market. This trend suggests that it may be the right time to invest more in other cryptocurrencies rather than focusing solely on Bitcoin. The recent price surge, with Ether briefly trading above $3,000, further underscores the growing interest in Ethereum among institutional investors.