TLDR
- BlackRock’s iShares Ethereum Trust (ETHA) has accumulated nearly $900 million in inflows since its launch on July 23, 2024.
- ETHA saw $109.9 million in inflows on August 6, its third-biggest flow day.
- The ETF’s performance puts it among the top six best-performing ETFs launched in 2024.
- Spot Ether ETFs saw combined inflows of $98.4 million on August 6, their best day since launch.
- BlackRock and Nasdaq have proposed a rule change to list and trade options for BlackRock’s spot Ethereum ETF.
BlackRock’s iShares Ethereum Trust (ETHA), a spot Ether exchange-traded fund (ETF), has demonstrated remarkable growth since its launch on July 23, 2024. In just 11 trading days, the fund has accumulated nearly $900 million in total inflows, solidifying its position as one of the top-performing ETFs of 2024.
On August 6, ETHA recorded $109.9 million in inflows, its third-biggest flow day since inception. This surge brought its total inflows to $869.8 million, an impressive feat for a newly launched product. The fund’s performance is particularly notable given the recent volatility in the cryptocurrency market.
Nate Geraci, President of The ETF Store, highlighted ETHA’s success, stating that it now ranks among the top six best-performing ETFs launched in 2024. Remarkably, four of the other top performers are spot Bitcoin ETFs, including BlackRock’s IBIT, underscoring the growing institutional interest in cryptocurrency-based investment products.
After “Crypto Black Monday” (lol) where ETHA took in nearly $50mil…
It vacuums-up approx $110mil today.
That $160mil alone would put it in top 10% of all new ETFs this yr.
ETHA now nearing $900mil inflows 2 weeks in.
Top 6 ETF launch in 2024 (4 of 5 others = spot btc ETFs). https://t.co/JtEIXcu7Yc
— Nate Geraci (@NateGeraci) August 7, 2024
The strong inflows into ETHA came despite a significant drop in Ether’s price. On August 5, often referred to as “crypto black Monday,” Ether experienced an 18% price fall. However, this market downturn didn’t deter investors. ETHA scooped up $47.1 million on that day, demonstrating investors’ willingness to “buy the dip.”
The combined flows for ETHA on August 5 and 6 alone were substantial enough to place it in the top 10% of ETFs launched in 2024, according to Geraci. This achievement is even more impressive considering that spot Ether ETFs are not yet offering staking returns or options trading.
Spot Ether ETFs as a whole saw a combined $98.4 million inflow on August 6, marking their best day outside of their launch day. Fidelity’s spot Ethereum ETF was the second-largest beneficiary, with $22.5 million in inflows, while Grayscale Ethereum Mini Trust and Franklin Ethereum ETF saw $4.7 million and $1 million in inflows, respectively.
Anthony Sassano, host of the Ethereum show The Daily Gwei, commented on the trend, saying, “TradFi slurping up that ETH,” referring to traditional finance’s growing appetite for Ethereum exposure.
While ETHA and other new Ether ETFs have seen strong inflows, Grayscale’s higher-fee Ethereum product (ETHE) recorded an outflow of $39.7 million. When factoring in the $2.2 billion that has left ETHE, the spot Ether ETFs have still seen a combined $473.9 million in outflows overall.
The success of these Ether ETFs comes at a time of significant market volatility. Ether’s price dropped to a low of $2,116 on August 5, a 26% decline from the previous day’s high. However, the cryptocurrency has since partially recovered, trading at around $2,494 as of the latest data.
Looking ahead, BlackRock and Nasdaq have proposed a rule change to list and trade options for BlackRock’s spot Ethereum ETF. This move could provide investors with additional tools to gain exposure to spot Ether, potentially at a lower cost.
The filing stated, “The exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot Ether.”
