BlackRock’s Ethereum ETF has surpassed $850M in revenue in two weeks
TLDR
BlackRock's iShares Ethereum Trust (ETHA) Since its launch on July 23, 2024, it has accumulated nearly $900 million in revenue. ETHA earned $109.9 million on August 6, the highest flow day. The ETF's performance placed it among the six best-performing ETFs launched in 2024. Spot Ether ETFs saw $98.4 million in revenue on August 6, the best day since inception. BlackRock and Nasdaq have proposed rule changes for listing and trading options for BlackRock's spot Ethereum ETF.
BlackRock's iShares Ethereum Trust (ETHA), the spot ether exchange-traded fund (ETF), has seen impressive growth since its launch on July 23, 2024. As one of the top performing ETFs in 2024.
In the year On August 6, ETHA recorded an inflow of $109.9 million, the third largest inflow day since its inception. This increase brought its total revenue to $869.8 million, an impressive feat for a newly launched product. The fund's performance is particularly noteworthy given the recent volatility in the cryptocurrency market.
ETF Warehouse President Nate Geracchi highlighted the ETF's success, saying it now ranks among the six best-performing ETFs launched in 2024. Interestingly, four of the other top performing providers are Bitcoin ETFs, including BlackRock IBIT. Institutional interest in cryptocurrency-based investment products.
After “Crypto Black Monday” (lol) where ETHA took almost $50 million…
Today it invests about $110 million.
That alone puts $160 million in 10% of all new ETFs this year.
ETHA is now about to hit $900M in 2 weeks.
Top 6 ETF Launches in 2024 (4 out of 5 others = spot btc ETFs).
— Nate Geraci (@NateGeraci) August 7, 2024
The strong inflows into ETHA came despite a drop in the price of Ether. On August 5th, often referred to as “Cryto Black Monday”, Ether experienced an 18% drop in price. However, this market crash did not deter investors. ETHA raised $47.1 million on the day, indicating investors' willingness to “buy the dip.”
ETHA's combined flows on Aug. 5 and 6 alone were enough to put it in 10% of ETFs launched in 2024, Geraci said. This success is even more impressive given that SpotEther ETFs have yet to offer stock returns or options trading.
The SpotEther ETF saw a combined inflow of $98.4 million on Aug. 6, its best day outside of its launch date. Fidelity's spot Ethereum ETF was the second-highest beneficiary, with $22.5 million in revenue, while the Grayscale Ethereum Mini Trust and Franklin Ethereum ETF earned $4.7 million and $1 million, respectively.
“TradFi is engaging that ETH,” Ethereum Show host Anthony Sassano commented on the trend, citing traditional finance's appetite for exposure to Ethereum.
While ETHA and other new ether ETFs saw strong inflows, Greyscale's high-fee Ethereum product (ETHE) recorded $39.7 million in inflows. When you factor in the $2.2 billion in ETHE withdrawals, the spot Ether ETFs saw a total of $473.9 million in outflows.
The success of these Ether ETFs comes at a time of significant market volatility. The price of Ether fell to $2,116 on August 5, a 26 percent drop from the previous day's high. However, the cryptocurrency has partially recovered, trading at around $2,494 as of the latest data.
Looking ahead, BlackRock and Nasdaq have proposed rule changes for the listing and trading of BlackRock's spot Ethereum ETF. This move could provide investors with additional tools to gain exposure to spot ether, which may be undervalued.
The filing said: “The exchange believes that offering options on Tamno will benefit investors by providing them with an additional relatively low-cost investment tool to gain exposure to Ether.”
