BlackRock’s iShares Ethereum Trust (ETHA) has topped $10 billion in assets, marking the third-fastest ascent to that milestone in ETF history, Bloomberg data shows, in a sign of surging investor appetite for Ethereum.
ETHA needed just 251 days to reach this threshold, less time than all but the iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fundspot Bitcoin funds, which needed just 34 days and 53 days, respectively.
The fund doubled in size over 10 days ending Wednesday, adding $5 billion in assets to become the shortest period ever for a fund to grow from that mark to $10 billion, Bloomberg Senior ETF Analyst Eric Balchunas told Decrypt.
"That five to $10 billion move, most of that‘s the price, although the flows were really robust too," Balchunas said. "So it was a nice combination of both. But I don‘t think I‘ve ever seen an ETF grow that quickly.
"This is very weird stuff," he added.
The inflow surge has been closely intertwined with a dramatic spike in the asset, which on Monday approached $3,850, its highest point since December. It is currently trading about 3.5 below that at $3,710, according to CoinGecko data.
Analysts have attributed the increase, along with the rise of ETH treasuries, to growing interest in the funds, although Balchunas said the cause and effect was unclear.
"Flows in the price are like tangoing," he said. "I don‘t think the flows make the price go up. I don‘t think the price makes the flows go up 100. They feed off each other, but it‘s not one for one. It‘s a chicken or egg question."
After starting tepidly a year ago by the lofty standards of the spot Bitcoin funds that preceded it, Ethereum exchange-traded funds started to accelerate amid a friendlier environment for digital assets under the administration of U.S. President Donald Trump, including the recent passage of the GENIUS Act.
The legislation is expected to benefit Ethereum, the dominant platform for stablecoin transactions.
The nine U.S.-listed Ethereum ETFs generated more than $1.1 billion in inflows just over the first three days of this week alone, according to U.K. asset manager Farside Investors.
Still, the funds‘ performance falls well short of the dramatic success of the 12 Bitcoin products that now hold more than $140 billion in AUM, led by IBIT, which now manages more than $70 billion in assets.
Those funds have also benefited from the surge in crypto markets and contributed to it.
In a text to Decrypt. ETF.com Senior Analyst Sumit Roy wrote that he was surprised at how long it took for ETF investors "to come around," particularly after Bitcoin funds‘ fast start.
"That all changed over the past few weeks as the mania over stablecoins and Ethereum Treasury companies gave the asset a shot in the arm," he wrote.
"We‘ll see if this is the catalyst that finally breaks Ethereum prices out of their trading range—it may or may not be," he added. "Regardless, it signals that the demand for Ethereum ETFs has finally arrived."
Your Email
