Ethereum News Today: BlackRock Boosts Ethereum Holdings Fourfold Bitcoin ETF Investment

Generated by AI AgentCoin World
Thursday, Jul 31, 2025 5:00 am ET2min read
Aime RobotAime Summary

- BlackRock boosts Ethereum holdings fourfold via ETHA, surpassing Bitcoin ETF investments in a week.

- Ethereum ETFs see $5.4B inflows over 18 days, pushing BlackRock’s holdings to 3M ETH and $10B AUM.

- Institutional interest shifts crypto ETF landscape, with Ethereum’s AUM share rising to 13% vs. Bitcoin’s 82%.

- SEC approves in-kind redemptions for Ethereum ETFs, potentially stabilizing price movements.

- Analysts note Ethereum’s growth potential amid Bitcoin’s stagnation, though price projections remain speculative.

BlackRock, the world’s largest asset manager, has significantly boosted its Ethereum holdings, purchasing over $1.2 billion worth of ETH via its iShares Ethereum Trust (ETHA) in the past week—four times the amount invested in its Bitcoin ETF (IBIT) during the same period [1]. This move reflects a growing institutional interest in Ethereum, with the asset manager contributing heavily to the Ethereum ETF inflow streak that has now reached 18 consecutive days [2]. During this time, Ethereum ETFs have recorded $5.4 billion in net inflows, surpassing combined inflows from the two previous longest streaks [1].

The inflows have pushed BlackRock’s total Ethereum holdings through its spot ETF to over 3 million ETH, while its Ethereum ETF also crossed $10 billion in assets under management within a year of launch. Daily trading volume for the ETF reached $1.1 billion, and on Monday alone, the fund saw a net inflow of 59,309 ETH, equivalent to $223.18 million [1].

These developments highlight a broader shift in the crypto ETF landscape. As of the latest data, Ethereum ETFs now account for 13% of total crypto ETF assets under management (AUM), up from 10% two months ago, while Bitcoin’s share has dropped to 82% from 90% [1]. Bloomberg ETF strategist Eric Balchunas has noted that Ether ETFs are steadily gaining ground against their Bitcoin counterparts, though he remains cautious about their long-term market share, forecasting that Ethereum’s share is unlikely to surpass 20% [1].

The U.S. Securities and Exchange Commission (SEC) recently approved in-kind redemptions for both Bitcoin and Ethereum ETFs, allowing institutions to redeem or purchase shares using ETH directly [1]. This change reduces the need for ETFs to sell ETH on the open market during redemptions, potentially stabilizing price movements and reducing market pressure.

Ethereum’s price has hovered around $3,800 in recent days, having faced rejection at $4,000 last week. Despite a 60% increase over the past month, analysts describe the recent pullback as a temporary cooldown ahead of potential further gains [1]. Some market observers speculate that with continued institutional adoption and strong fundamentals—including Ethereum’s transition to a proof-of-stake model and improved scalability—prices could inch closer to $5,000 [1]. However, such projections remain speculative and are not yet supported by immediate market action.

BlackRock’s increased exposure to Ethereum aligns with a broader trend of investors re-evaluating their crypto portfolios. While Bitcoin remains the dominant asset by market capitalization, its price has stagnated below $120,000 in 2025, prompting a search for alternatives with stronger growth potential [1]. Ethereum’s expanding use cases, particularly in decentralized applications and smart contracts, make it an attractive option for investors seeking exposure to a more dynamic and scalable platform.

The growing institutional support, as evidenced by BlackRock’s strategic shift, could provide a tailwind for Ethereum in the long term. However, the cryptocurrency market remains inherently volatile, and Ethereum’s price performance will continue to be influenced by macroeconomic factors, regulatory developments, and overall market sentiment [1]. Institutional backing, while significant, is not a guarantee of short-term price movement but adds a layer of credibility that may support the asset over time.

[1] Source: [1] As Bitcoin (BTC) Flatlines Below $120K, Investors Are Diversifying With This Token Recently Moved 20%

(URL: https://www.msn.com/en-us/money/savingandinvesting/as-bitcoin-btc-flatlines-below-120k-investors-are-diversifying-with-this-token-recently-moved-20/ar-AA1JAS0W?ocid=finance-verthp-feeds)

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