SEC Approval Fuels $500M Ethereum ETF Surge by BlackRock and Fidelity

BlackRock and Fidelity have collectively acquired over $500 million in Ethereum (ETH) through their exchange-traded funds (ETFs) in the past 48 hours, according to data from Arkham Intelligence. The transactions were executed primarily via Coinbase Prime, an institutional crypto trading platform, with BlackRock’s iShares Ethereum Trust ETF (ETHA) and Fidelity’s Ethereum Fund (FETH) leading the inflows. ETHA recorded $372.4 million in trading volume on December 10 alone, while FETH added $103.7 million, marking the eighth consecutive day of positive inflows for both fundsBlackRock and Fidelity Purchase $500 Million in …^[1]. These purchases follow the U.S. Securities and Exchange Commission’s (SEC) May 2024 approval of eight spot Ethereum ETFs, which has spurred significant institutional activity in the crypto market.

The scale of the acquisitions underscores growing institutional confidence in Ethereum. BlackRock’s ETHA, the largest Ethereum ETF with $2.93 billion in inflows, and Fidelity’s FETH, with $1.35 billion in inflows, have become key vehicles for institutional exposure to the asset. Ethereum’s price surged 5.1% in 24 hours to $3,830 as of December 11, reflecting heightened demandBlackRock and Fidelity Purchase $500 Million in …^[1]. Arkham highlighted the magnitude of the purchases, noting that the two firms “BOUGHT OVER HALF A BILLION USD OF ETH” in two days. The transactions align with broader trends of institutional adoption, as both firms continue to expand their crypto portfolios following the ETF approvals.

BlackRock is also seeking regulatory approval to launch spot trading options for its ETHA ETF, which would require clearance from the SEC, the Commodity Futures Trading Commission (CFTC), and the Options Clearing Corporation (OCC). The SEC’s decision is expected by April 2025BlackRock and Fidelity Purchase $500 Million in …^[1]. Fidelity has similarly filed for a spot Ethereum ETF with the SEC, proposing to track the performance of Ethereum via its Fidelity Ethereum Reference Rate. These developments indicate a strategic shift toward integrating Ethereum into mainstream financial systems, with both firms positioning themselves to capitalize on the asset’s growing legitimacy.

Ethereum’s price momentum and trading activity have aligned with the large-scale acquisitions. The asset’s 45% surge over the past month, driven by increased staking and decentralized finance (DeFi) adoption, has reinforced bullish sentimentBlackRock Pulls in $500M for Ethereum: A Transformative Shift^[3]. The Shanghai Upgrade, which enabled stakers to withdraw funds earlier this year, has further catalyzed institutional participation in Ethereum’s proof-of-stake ecosystem. Analysts suggest macroeconomic factors, including the June 2025 Nasdaq Composite Index drop, have prompted capital rotation into Ethereum as investors seek alternative assets amid uncertaintyBlackRock Pulls in $500M for Ethereum: A Transformative Shift^[3].

The institutional buying spree raises questions about the future of crypto volatility and regulation. While the influx of capital lends legitimacy to Ethereum, it also signals a shift toward a more regulated, slower-moving market. Galaxy Digital’s $283 million OTC Ethereum purchase in June 2025, staked shortly after, exemplifies whale confidence in Ethereum’s role as financial infrastructureBlackRock Pulls in $500M for Ethereum: A Transformative Shift^[3]. However, the increased institutional presence may alter the high-risk, high-reward dynamics that have historically defined the crypto space.

Market analysts note that BlackRock’s and Fidelity’s actions reflect a broader trend of digital assets becoming core components of institutional portfolios. The firms’ strategic focus on Ethereum, rather than Bitcoin in this instance, highlights the asset’s unique position in the evolving crypto landscape. With Ethereum’s price surging and trading volumes climbing, the recent purchases by BlackRock and Fidelity underscore the growing integration of crypto into traditional finance, potentially reshaping market dynamics in the coming yearsBlackRock and Fidelity Purchase $500 Million in …^[1]BlackRock Pulls in $500M for Ethereum: A Transformative Shift^[3].