BlackRock’s iShares ETHA ETF Surpasses $1B in Net Inflows

The BlackRock iShares Ethereum Trust (ETHA), an exchange-traded fund (ETF), has recorded a significant milestone after exceeding $1 billion in inflows. This achievement makes the ETHA the first among 11 ETF Issuers to breach the billion-dollar mark. Nevertheless, the Ethereum ETF market saw cumulative outflows of over $440 million compared to its Bitcoin counterpart, which registered notable inflows.

BlackRock’s Ethereum Trust Leads ETF Market

Recent data indicates that ETHA is currently slightly behind Grayscale’s Ethereum Trust (ETHE) and its smaller equivalent, the mini-Ether Trust (ETH), with about $860 million in net assets. The exceptional performance of ETHA demonstrates the growing institutional interest and confidence in the cryptocurrency industry.

Meanwhile, Bitwise’s ETHW has drawn $310 million in net inflows, while Fidelity’s FETH has amassed $367 million. Since the funds’ July 23 inception, $227 million has been invested in Grayscale’s ETH. However, other ETFs in the market have not fared as well, with net inflows remaining under $60 million, indicating a more cautious approach from some investors.

Mixed Results for Grayscale

While Grayscale’s ETHE has had major difficulties, BlackRock’s iShares Ethereum Trust has continued to thrive. Grayscale’s ETHE, which was formerly restricted to institutional use, has had significant withdrawals, with a net outflow of $2.7 billion since its inception.

This trend raises questions about Grayscale’s product prospects because its performance contrasts with that of other ETFs. The withdrawals from ETHE are indicative of a larger pattern of poor performance in Ethereum-focused ETFs, especially when compared to their Bitcoin equivalents.

With cumulative net inflows of more than $440 million, Bitcoin ETFs have experienced more positive outcomes. Ethereum-based ETFs, on the other hand, have had difficulty sustaining the same degree of investor interest.

Looking at the first month of spot Bitcoin ETFs, which witnessed daily net inflows of over $125 million and eventually accumulated over $11 billion worth of Bitcoin, there are stark differences in the performance of Bitcoin and Ethereum ETFs. In terms of 2024 inflows, BlackRock’s Bitcoin fund is in the top five ETFs next to high-performing products like the Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV).

Crypto Whale’s Profitable Move

In a related development, on-chain data showed that a trader made significant profits on a well-planned multi-month Ethereum trade. The unnamed whale recently sold 15,000 ETH for $39.7 million, according to Lookonchain data.

Notably, the whale made a withdrawal of 96,639 ETH from Coinbase in September 2022, when Ethereum was priced at $1,567 per ETH, valued at $151.42 million. Moreover, the whale’s actions exemplify the efficacy of the traditional “buy low, sell high” strategy.

Following ETH’s price spike, the whale offloaded 55,000 ETH, equivalent to $176 million, at an average price of $3,199 per ETH. This left them with 41,639 ETH, currently valued at around $107 million. Hence, the estimated total profit from these trades is approximately $132 million.

Market Attitude and Prospects

For many holders, Ethereum continues to be a rewarding investment despite recent price changes. 66% of Ethereum holders are currently profitable, according to data from IntoTheBlock, despite a 26% decline in price over the previous month.

Nonetheless, there has been a 180% decline in Ethereum’s exchange net flows, as well as an 8.2% decline in big transaction volumes. There are signs of decreased market activity, but some traders remain hopeful that Ethereum has found a solid level of support.

Some traders predict that Ethereum’s price will stabilize at the $2,100–$2,500 region, which they regard as an “unbreachable support cluster.” They also believe that its price may consolidate around the 100-day moving average and the 0.618 Fibonacci retracement level before a strong rally.

This attitude is a reflection of the market’s cautious optimism. Following its large inflows, BlackRock’s iShares Ethereum Trust has surpassed many of its rivals and has become a market leader in the Ethereum ETF space.

Other Ethereum-based ETFs, including Grayscale’s ETHE, continue to struggle with inflows. Observers note that the future performance of ETH products and ETH’s price will depend on the broader market’s reaction to various upcoming macroeconomic events.