Ethereum News Today: BlackRock Invests $547 Million in Ethereum, Surpassing Bitcoin Inflows by $50 Million

BlackRock, the world's largest asset manager, has made a significant investment in Ethereum, acquiring $547 million worth of ETH in a single day. This purchase surpasses its Bitcoin inflows by $50 million, indicating a strategic shift in the firm's crypto allocation. According to Arkham Intelligence, when adjusted for market cap, BlackRock's ETH purchases are five times larger than its BTC investments. This move signals a growing preference for Ethereum over Bitcoin among institutional investors.

BlackRock's Ethereum acquisition now totals over $547 million, while Bitcoin inflows trail at $497 million. The firm's systematic accumulation of ETH over July suggests long-term positioning. On July 16 alone, BlackRock added $499.2 million worth of ETH, increasing its total ETH holdings to 2.02 million, valued at $6.94 billion. This pattern appears deliberate, with the firm's ETH allocation being five times higher than its BTC allocation when adjusted for market cap.

This shift in institutional sentiment is not isolated. Institutional flows into ETH-focused products have increased 32% month-over-month, while BTC fund inflows have stagnated. In early July, BlackRock held $156 million in ETH, surpassing its $125 million BTC position. That gap has since widened to $50 million, and the current positions indicate that ETH could soon be the top crypto exposure in BlackRock’s portfolio. This could also be an inflection point for regulators, as the regulatory front is gradually turning in Ethereum’s favor.

Several key factors are driving this institutional pivot towards Ethereum. Ethereum’s proof-of-stake model allows asset managers to earn passive rewards, unlike Bitcoin’s energy-intensive mining model. Additionally, Nasdaq recently filed a proposal to enable ETH staking within BlackRock’s iShares Ethereum ETF, pending regulatory approval. Ethereum’s use in DeFi, NFTs, and tokenization provides a broader investment narrative than Bitcoin’s store-of-value pitch. According to SoSoValue data, BlackRock’s Ethereum ETF received $546.7 million in inflows on July 17, compared to $497.3 million for the Bitcoin ETF, confirming sustained institutional momentum.

Ethereum’s market surge has further fueled investor confidence. At the time of writing, ETH trades at $3,624, up 46% in the last 30 days, with a 21% weekly gain. Increased whale activity and dormant wallet reactivation indicate that long-term holders are re-entering the market. Analysts see more upside. According to market strategist Cas Abbé, Ethereum is entering a Wyckoff accumulation phase, projecting a possible breakout past $4,000. Abbé believes BlackRock’s purchases are mirroring technical accumulation patterns, aligning with smart money movements.

Ethereum’s move to proof-of-stake is changing the way institutions look at crypto assets. With ETFs set to enable staking rewards sooner than later, institutions are not simply talking about a volatile asset but a yield-producing asset. This potentiality is also increasing the demand for Ethereum-focused financial products. Nasdaq’s amendment to the filing indicates that the staking ban would be waived so that ETF-held ETH could be used for consensus. If approved, it would allow institutions to get exposure to staking rewards via regulated ETFs and potentially propel more adoption. BlackRock’s aggressive buying could be a pre-positioning bet on this shift. Assuming staking for ETFs is permitted, the firm could realize the asset appreciation alongside yield, effectively turning it into a two-income investment for investors.