Ethereum ETFs Surge as BlackRock Continues to Dominate the Market
Investor allocations to products are increasing five months following the launch of Ethereum ETFs, with BlackRock’s $3.6 billion offering setting the pace. With a $200 million increase Thursday, BlackRock’s spot Ethereum ETF, the iShares Ethereum Trust, ended a 16-day run of net inflows, bringing in $1.5 billion since November 20, according to CoinGlass. Before then, the ETF had received net inflows of $1.7 billion over 84 trading days since its July launch.
Since their January inception, spot Bitcoin ETFs have drawn inflows totaling billions upon billions of dollars, making them a resounding success this year. The industry’s second-largest coin by market capitalization hasn’t had the same run despite products helping make Bitcoin a Wall Street sensation. However, spot Ethereum ETFs witnessed a spike in post-election enthusiasm.
Ethereum’s Price and ETF Inflows Surge: BlackRock Dominates Market
As Ethereum’s price dropped to $3,800 on December 5, the iShares Ethereum Trust ETF saw record-breaking inflows of $293 million. The price of Ethereum surged beyond $4,000 the next day, breaking the psychological barrier for the first time since March. BlackRock‘s U.S. head of thematic and active ETFs, Jay Jacobs, made remarks at the same time that flows for the iShares Ethereum ETF increased. According to Bloomberg ETF expert Eric Balchunas, on Thursday, BlackRock is only at the tip of the iceberg with its Bitcoin and Ethereum products, concentrating on those instead of growing its portfolio.
James Butterfill, Head of Research at CoinShares, said that although BlackRock’s spot Ethereum ETF is the market leader in the United States, comparable products are gaining traction globally. According to him, $3.5 billion has been invested in Ethereum investment products since November 20.
It’s not just a BlackRock or iShares thing. We’re seeing quite a unanimous turnaround in sentiment for Ethereum, which has really been suffering. Ethereum is the underdog this year. It’s playing a bit of catch-up.
Butterfill
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