Ethereum News Today: BlackRock Buys 86,650 ETH for $324.6M, Shifting From Bitcoin to Ethereum 2.0 Amid Altcoin Rally

BlackRock Inc. has significantly expanded its Ethereum exposure amid a robust altcoin market rally, acquiring 86,650 Ethereum units worth $324.6 million this week. This move follows the firm’s June sale of $561 million in Bitcoin, which it appears to have reinvested strategically into Ethereum, reflecting a shift in institutional asset allocation [1]. The firm’s Ethereum holdings now include its iShares Ethereum Trust, which has attracted $20 billion in inflows since its January 2024 launch, positioning it as the largest institutional Ethereum ETF [1]. The firm’s decision aligns with Ethereum’s transition to a more energy-efficient proof-of-stake model under Ethereum 2.0, a factor increasingly appealing to institutional investors seeking sustainable blockchain infrastructure [1].

Ethereum’s market dominance has fueled broader altcoin momentum, with the Altseason indicator reaching 85—a sign of sustained capital inflows into non-Bitcoin cryptocurrencies [1]. Ethereum’s market capitalization surged $120 billion over two weeks, reaching nearly $440 billion, while its price climbed 18% to $3,750 by July 24 [1]. This growth outpaced gains in other altcoins like Solana and Cardano, which also saw double-digit returns this month. Ethereum’s role in decentralized finance (DeFi) and non-fungible tokens (NFTs) has further solidified its position as a preferred institutional asset, with its ETH/BTC ratio rising to reflect increased capital migration [1].

BlackRock’s institutional credibility, backed by over $10 trillion in assets under management, has amplified confidence in crypto markets. The firm’s Ethereum ETFs have driven cumulative inflows exceeding $7.7 billion, with its Ethereum Trust leading weekly trading volumes by 100% to $3.1 billion [3]. This momentum coincides with broader institutional adoption: crypto ETF assets now exceed $30 billion, propelled by mid-2024 approvals for spot Ethereum ETFs [1]. Rival asset manager Vanguard is expected to follow suit, given the growing demand for diversified crypto exposure [1]. Ethereum currently accounts for 28% of crypto ETF assets under management, underscoring its role in institutional portfolios [1].

However, the rapid accumulation of altcoin exposure has introduced volatility risks. Futures open interest across Ethereum, Solana, XRP, and Dogecoin surged 69% to $44 billion since early July, with daily trading volumes remaining above two-standard-deviation levels for 12 consecutive sessions [5]. Leveraged long positions have incurred $32.9 million in cumulative funding fees over the past month, nearing levels seen during Bitcoin’s March 2025 peak [5]. Analysts caution that the market’s tight coupling between Ethereum and altcoins could amplify downside risks if Ethereum’s momentum falters, particularly as Bitcoin still holds 64% of total crypto market value [5].

Despite these risks, the altcoin rally shows no immediate signs of slowing. Over $216 billion in Ethereum inflows since July have marked one of the largest altcoin surges in history [5]. Private wealth firms like World Liberty Financial have joined the trend, adding 3,473 Ethereum units worth $13 million to their holdings, boosting total Ethereum reserves to 73,616 ETH [6]. Meanwhile, a Gallup poll reveals 45% of U.S. investors now view cryptocurrencies as long-term investments, suggesting sustained demand [1]. Regulatory uncertainties and market volatility remain challenges, but BlackRock’s strategic bets signal growing institutional confidence in Ethereum’s future [1].

Sources:

[1] [BlackRock Boosts Ethereum Holdings Amid Surging Altcoin Rally] (https://coinfomania.com/blackrock-ethereum-altcoin-rally-2025/)

[3] [Ethereum Spot ETF Volume Surges 100% to $3.1 Billion, Led by BlackRock] (https://www.ainvest.com/news/ethereum-news-today-ethereum-spot-etf-volume-surges-100-3-1-billion-led-blackrock-2507/)

[5] [Altcoin Leverage Balloons to $44 Billion, Setting Up Whipsaw Volatility] (https://cryptoslate.com/altcoin-leverage-balloons-to-44-billion-setting-up-whipsaw-volatility/)

[6] [World Liberty Financial Acquires 3473 ETH as Institutions Eye Ethereum] (https://coincentral.com/world-liberty-financial-acquires-3400-eth-as-institutions-eye-ethereum/)