BlackRock's spot Ethereum (ETH) ETF, the iShares Ethereum Trust ETF (ETHA), has exceeded $1 billion in net inflows.
BlackRock's spot Ethereum (ETH) ETF, the iShares Ethereum Trust ETF (ETHA), has exceeded $1 billion in net inflows. Launched in late July alongside offerings from seven other asset managers, ETHA has outpaced its competition significantly.
Fidelity's Ethereum Fund trails behind with $367 million in net inflows, followed by Bitwise’s Ethereum ETF at $310 million, and Grayscale's Ethereum Mini Trust at $227 million. However, these three ETFs still fall short of the inflows to ETHA.
BlackRock's ETF has seen steady growth without any outflows since its debut. Even when Ethereum’s price fell by 22% on August 5, investors added $47 million to ETHA, followed by another $100 million the next day. On its best day, ETHA attracted $118 million, while Fidelity’s fund saw only $8.6 million.
Though ETHA took 21 days to reach the $1 billion mark, compared to just five days for BlackRock's Bitcoin ETF, it remains a dominant force. Spot Ethereum ETFs have collectively experienced $440 million in outflows, primarily from Grayscale’s Ethereum Trust, which has faced $2.4 billion in net outflows since its transition from a closed-end fund. This has contributed to the underperformance of ETH amidst a wider market downturn. Since the launch of spot ETFs on July 23, ETH is down over 25%.
Grayscale’s product has struggled partly due to its high management fee of 2.5%, while ETHA offers a competitive 0.25% expense ratio, matching Fidelity's fund. Other ETFs, like Franklin Ethereum ETF, offer even lower fees at 0.19%.
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