Ethereum News Today: BlackRock’s $1.3B Ethereum Purchase Drives 3.08% Price Surge Despite ETF Downturn

BlackRock’s $1.3 billion Ethereum purchase on July 28, 2025, has emerged as a pivotal indicator of institutional confidence in the asset, despite a 2.8% pre-market decline in Ethereum ETFs. The firm increased its Ethereum holdings to $10.5 billion, contrasting with the downward pressure observed in ETF markets. This divergence highlights a growing divide between institutional accumulation strategies and retail investor sentiment, as Ethereum’s spot price rose 3.08% to $3,887.89 amid a 24-hour trading volume of $34.48 billion [1].

The iShares Ethereum Trust ETF (ETHA), which holds $10.25 billion in assets, fell 2.82% pre-market, while the Grayscale Ethereum Trust ETF (ETHE) dropped approximately 2.6%. These declines reflect cautious investor behavior, though market analyst Nate Geraci emphasized that ETF shares remain fully backed by real Ethereum assets, countering concerns about underperformance [1]. Geraci’s remarks addressed broader skepticism, particularly from critics like Robert Kiyosaki, who question the reliability of ETF structures in capturing cryptocurrency value [1].

BlackRock’s accumulation of ETH may tighten supply dynamics, as institutional buying reduces the circulating amount of Ethereum available for retail trading. This strategy aligns with historical trends where large-scale purchases by financial institutions have supported price stability. For instance, SharpLink—a firm recently appointed to manage Ethereum assets—acquired over $1.3 billion in ETH, further amplifying institutional demand. SharpLink’s aggressive buying, led by a former BlackRock executive, underscores a shift toward direct token ownership over ETFs, driven by concerns about ETFs underperforming spot prices [2].

The broader crypto market, however, remains volatile. While Ethereum ETFs experienced a $4.39 billion inflow in the preceding week, Bitcoin ETFs ended a 12-day inflow streak. Ethereum’s market capitalization approached $120 billion, with realized capitalization exceeding $1 trillion, yet downward pressure persists due to ETF redemptions and macroeconomic uncertainties. Analysts suggest that SharpLink’s and BlackRock’s activities could stabilize Ethereum prices in the short term, particularly as the asset navigates regulatory scrutiny and tariff negotiations [1][2].

The appointment of a former BlackRock executive to SharpLink’s leadership team signals deeper integration between traditional finance and crypto markets. This individual’s prior expertise in institutional fixed-income strategies may enhance Ethereum’s adoption in institutional portfolios. Meanwhile, regulatory developments, including the U.S. Securities and Exchange Commission’s ongoing review of crypto ETFs, remain a critical factor for market participants. SharpLink’s purchases demonstrate confidence in Ethereum’s utility as a settlement asset, especially as the network prepares for major upgrades [2].

Market participants remain divided on Ethereum’s trajectory. While direct ownership strategies gain traction, ETF-linked assets face profit-taking pressures. Ethereum’s price hovered near $3,100 as of the latest data, reflecting a cautious stance among ETF holders. However, institutional demand, as evidenced by BlackRock and SharpLink, suggests a potential divergence in performance between Ethereum and Bitcoin in the near term. Analysts will closely monitor whether this trend translates into sustained price strength as macroeconomic factors and ETF redemption cycles evolve [2].

The interplay between institutional buying and ETF volatility underscores a maturing market where diversified strategies are becoming essential. As firms prioritize tailored crypto exposure, the role of ETFs may evolve to complement direct holdings. For now, BlackRock’s and SharpLink’s actions highlight Ethereum’s appeal as a long-term asset, even as short-term market dynamics remain influenced by retail sentiment and regulatory developments [1][2].

Source:

[1] [BlackRock’s $1.3B Ethereum Purchase May Signal Institutional Demand Amid ETF Price Declines](https://en.coinotag.com/blackrocks-1-3b-ethereum-purchase-may-signal-institutional-demand-amid-etf-price-declines/)

[2] [SharpLink’s Ether Bet Surpasses $1.3B After Latest Purchase](https://cryptoslate.com/crypto-charts-daily/)