BlackRock’s iShares Ethereum Trust (ETHA) is on track to become the first U.S. spot Ethereum exchange-traded fund (ETF) to reach $1 billion in net inflows. Launched just three weeks ago, ETHA has already attracted approximately $901 million in net capital, according to data from Farside Investors.
The ETF is expected to hit the $1 billion milestone this week, marking it as one of the most successful ETF launches of the year.
Nate Geraci, president of The ETF Store, has expressed confidence that ETHA will soon achieve the $1 billion inflow target, citing its rapid growth as a significant achievement in the ETF market.
While Ethereum ETFs have shown increasing interest, they have not yet matched the level of enthusiasm seen for Bitcoin ETFs. BlackRock’s data highlights that the accumulation rate for Ethereum ETFs is slower compared to Bitcoin. Martin Leinweber, Director of Digital Asset Research & Strategy at MarketVector Indexes, had earlier predicted more modest inflows for Ethereum ETFs relative to the billions attracted by Bitcoin ETFs.
Bloomberg ETF analyst Eric Balchunas estimates that the demand for spot Ethereum ETFs may be around 15% to 20% of the demand for Bitcoin ETFs, reflecting a more cautious investor interest since the products’ approval in May.
Despite its rapid growth, BlackRock’s ETHA still trails Grayscale’s Grayscale Ethereum ETF (ETHE) in managed assets. ETHE, which has faced approximately $2.3 billion in outflows since its conversion from a trust, currently holds $4.9 billion in Ethereum. In comparison, ETHA has amassed over $761 million in assets under management (AUM) and could soon surpass ETHE if its growth trajectory continues.
ETHA’s potential to lead the Ethereum ETF market remains uncertain, especially with Grayscale’s introduction of its Ethereum Mini Trust, which now has $935 million in AUM after being seeded with 10% of the trust’s holdings.
BlackRock’s Bitcoin ETF (IBIT) has outpaced Grayscale’s Bitcoin ETF (GBTC) to become the largest spot Bitcoin fund, holding approximately 348,000 BTC valued at around $21 billion. The success of IBIT underscores BlackRock’s ability to attract significant inflows into its crypto ETFs. While ETHA’s growth is slower compared to IBIT, its performance underscores a growing institutional interest in Ethereum exposure.
