BlackRock Ethereum ETF Expected to Hit $1B in Net Inflows This Week, Says Nate Geraci

Highlights:

• BlackRock’s ETHA is set to be the first US spot Ethereum ETF with $1B inflows.
• ETHA’s rapid growth may soon surpass Grayscale’s ETHE in terms of assets under management.
• Ethereum ETFs see positive weekly flows for the first time, with ETHA leading.

BlackRock’s Ethereum ETF, the iShares Ethereum Trust (ETHA), is on track to become the first US spot Ethereum fund to reach $1 billion in net inflows. According to Farside Investors, ETHA has already attracted approximately $901 million in net capital just three weeks after its launch.

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Nate Geraci, president of The ETF Store, mentioned in a post on X on August 12 that ETHA is expected to hit a significant milestone this week. He also highlighted that ETHA is among the top six most successful ETF launches of the year.

iShares Ethereum ETF has taken in $900+mil in < 3 weeks…

Pretty much a lock to hit *$1bil* this week IMO.

As mentioned previously, ETHA already top 6 launch of 2024 (4 of 5 others are spot btc ETFs).

— Nate Geraci (@NateGeraci) August 12, 2024

BlackRock’s ETHA Poised to Outpace Grayscale’s ETHE

BlackRock’s ETHA has the potential to become the fastest-growing spot Ethereum ETF. However, Grayscale’s Grayscale Ethereum ETF (ETHE) remains the leader in managed assets despite facing nearly $2.3 billion in outflows since its conversion from a trust. ETHE currently holds $4.9 billion in assets, while ETHA has over $761 million under management (AUM). At the current rate of accumulation, ETHA may soon surpass ETHE in AUM.

ETHA might lead the Ethereum ETF market, but more data is needed. Grayscale’s Ethereum Mini Trust, seeded with 10% of its holdings, has $935 million in AUM. Despite steady capital flow, its net inflows are modest compared to BlackRock’s ETHA.

BlackRock’s Bitcoin ETF Hits $1 Billion in Four Days

BlackRock’s iShares Bitcoin Trust (IBIT), which provides direct exposure to Bitcoin (BTC), became the first spot Bitcoin ETF to achieve $1 billion in inflows. Due to substantial and consistent inflows, it reached this milestone in just four days.

BlackRock’s ETF data shows that Ethereum is accumulating slower than Bitcoin. While demand for Ethereum ETFs is increasing, it hasn’t reached the same level of interest as Bitcoin ETFs, which is not entirely surprising. BlackRock’s IBIT has surpassed Grayscale’s Bitcoin ETF (GBTC) to become the largest spot Bitcoin fund by Bitcoin holdings. Currently, IBIT holds about 348,000 BTC, which is around $21 billion.

Ethereum ETFs Trail Behind Bitcoin ETFs in Demand

Martin Leinweber, Director of Digital Asset Research & Strategy at MarketVector Indexes, previously anticipated more modest inflows into Ethereum ETFs. This contrasts with the substantial inflows seen with Bitcoin ETFs, which have attracted billions in a short period. Eric Balchunas, a well-known Bloomberg ETF analyst, estimated that the demand for spot Ethereum ETFs could be around 15% to 20% of the demand for Bitcoin ETFs. This projection followed the landmark approval of these products in May.

Ethereum ETFs Weekly Flows Turn Positive for the First Time Since Launch

According to ETF tracker SoSoValue, the nine newly launched US spot Ether ETFs experienced a net inflow of $104.8 million for the week starting August 5. The total trading volume reached $1.9 billion, raising the total net assets to $7.3 billion as of August 9. The positive inflow occurred despite a significant 23% drop in Ether’s price since early August. Of the nine funds, six reported positive net flows for the week, with BlackRock’s ETHA leading with $188.4 million.

In just 13 days of trading, BlackRock’s fund has accumulated over $900 million and has yet to experience an outflow. Meanwhile, its closest competitor, the Fidelity Ethereum Fund (FETH), saw $44.65 million in inflows last week, raising its total to $342 million. The other four ETFs with inflows last week were Grayscale’s ETH with $19.8 million, VanEck’s ETHV with $16.6 million, Bitwise’s ETHW with $11.7 million, and Franklin’s EZET with $3.7 million.

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