BlackRock’s Ambitious Move into Crypto: Ethereum ETF Aims for a $1 Billion Market Cap

About to become the first US spot Ethereum fund to reach $1 billion in net inflows, BlackRock’s iShares Ethereum Trust is poised to make history. Three weeks after its introduction, the ETHA ticker has raised almost $901 million in net capital, according to data from Farside Investors. Experts expect the ETF to cross the $1 billion milestone this week.

The ETF’s prior record-breaking success has further supported its appeal. Despite the general market declines, BlackRock’s iShares Ethereum Trust saw its most significant daily inflow of $109.9 million on August 6. This spike in interest was due to BlackRock and Nasdaq’s submission of a proposal to add ETHA options, hence increasing investing opportunities.

Although ETHA has performed exceptionally well, today’s net outflows from the Ethereum ETF market were $15.8 million. The iShares ETH Trust ETF, Greyscale ETH Trust, ETH Mini Trust, and Fidelity’s ETH Fund facilitated the outflow.

The general trend for Ethereum ETFs is still positive, with BlackRock’s fund leading the way, notwithstanding the uneven daily performance.

Bulls Aim For Ethereum Breakout

Market observers anticipate a significant capital influx similar to the post-Bitcoin ETF events, but a supply crisis is looming. Experts have highlighted two key trends: exchange balances have dropped to 10.2% of the total supply, and 40% of ETH is locked in smart contracts, reducing the circulating supply available for trading.

On the price front, Ethereum shows vital signs of recovery after consolidation. The leading cryptocurrency rebounds off a critical support level, suggesting potential bullish momentum.

Market observers expect a capital surge like post-Bitcoin ETF events, but a supply crunch is looming. Experts point to two trends: exchange balances have fallen to 10.2% of the total supply, and 40% of ETH is locked in smart contracts, limiting the circulating supply for trading.

Given the recent upswing in the digital asset market, Ethereum is in a favorable position to make a breakthrough.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.