BlackRock Buys $560 Million in Ethereum Amid Institutional Surge

Ethereum (ETH) has seen a significant increase in institutional investment, with major players like BlackRock accumulating substantial holdings. According to on-chain analytics platform Lookonchain, BlackRock has acquired over 214,000 ETH, valued at approximately $560 million, over the course of a week. This move comes during a period of price consolidation for ETH, which has been trading between $2,500 and $2,700 for several weeks. Despite the low price volatility, ETF inflows have been steadily rising, indicating growing institutional confidence in the cryptocurrency.

BlackRock’s strategy appears to be deliberate, focusing on accumulation during a period of market calm. This approach suggests that the firm is positioning itself ahead of potential macroeconomic or regulatory shifts. The iShares Ethereum Trust (ETHA) has seen sustained inflows since U.S. regulators approved Ethereum spot ETFs earlier this year. Data from SoSoValue shows that Ethereum ETFs posted $109.43 million in net daily inflows, with BlackRock alone accounting for $77.06 million. This marks the 12th consecutive day of positive inflows into ETH-based funds.

In contrast, BlackRock’s Bitcoin ETF experienced significant outflows on May 30 and June 2, totaling $561 million. While there was a brief return of inflows to the firm’s Bitcoin product with $58 million on Tuesday, this figure was overshadowed by the momentum in Ethereum’s ETF. The Global In/Out of the Money (GIOM) indicator shows Ethereum’s next major resistance zone between $2,726 and $2,856. Approximately 4.13 million ETH, held by 2.7 million addresses, were acquired within this band. Meanwhile, over 12 million ETH sit in the out-of-the-money zone at an average cost basis of $2,613. This imbalance suggests that many investors are still in accumulation mode, indicating that ETH may be under less near-term sell pressure.

Joao Wedson, CEO of analytics firm Alphractal, noted significant market-maker activity at lower levels, which could signal a breakout is forming. He identified a short-term target of $2,830 following a break above $2,660 and highlighted $2,556 as a key stop-loss threshold based on aggregated liquidation data. Ethereum’s daily chart shows modest strength, with a bullish crossover between the 50-day and 100-day exponential moving averages recently formed, supporting the short-term outlook. The daily Relative Strength Index (RSI) also indicates renewed buyer interest.

BlackRock’s $560 million Ethereum purchase via the iShares Ethereum Trust underscores a strategic long-term commitment rather than a speculative trade. Despite Ethereum’s price remaining within a tight range, institutional interest continues to build, reflecting a growing confidence in the cryptocurrency’s potential. This trend highlights the increasing institutional adoption of Ethereum, positioning it as a key player in the digital asset landscape.