Ethereum ETF from BlackRock Surpasses $1 Billion in Profits, Nearly Tripling Fidelity

BlackRock’s Ethereum ETF has reached a significant milestone, surpassing $1 billion in cumulative net inflows, solidifying its position as a preferred choice among investors in the crypto space. The iShares Ethereum Trust ETF (ETHA) made its debut in late July, alongside offerings from seven other asset managers. However, it has outpaced its competitors in attracting investor funds.

Fidelity’s Ethereum Fund follows as the second-highest in cumulative net inflows at $367 million, trailed by the Bitwise Ethereum ETF at $310 million and the Grayscale Ethereum Mini Trust at $227 million. Collectively, these three products have garnered around $900 million in allocations, still falling short of the individual progress of ETHA.

Despite market volatility, BlackRock’s Ethereum ETF has not experienced any outflows since its launch. Notably, when Ethereum’s price plummeted by 22% on August 5, investors poured $47 million into the product, with an additional $100 million the following day.

Comparatively, ETHA has outperformed its competitors significantly in terms of inflows. On its best day, it attracted $118 million, while Fidelity’s Ethereum Fund saw only $8.6 million in inflows, according to data from Farside Investors.

Although BlackRock’s Ethereum ETF has seen remarkable success, it has not matched the popularity of the company’s Bitcoin ETF, which achieved $1 billion in net inflows within five trading days, compared to ETHA’s 21-day timeframe.

On the flip side, spot Ethereum ETFs as a whole have experienced outflows totaling $440 million. Notably, Grayscale’s Ethereum Trust has faced the most significant outflows, with $2.4 billion in cumulative net outflows since its transition from a closed-end fund.

Analysts have pointed to the high expense ratio of Grayscale’s product, with a management fee of 2.5% to investors, as a factor contributing to its outflows. In contrast, ETHA’s expense ratio of 0.25% aligns with Fidelity’s Ethereum Fund, while other cheaper spot Ethereum ETFs exist, such as the Franklin Ethereum ETF with a cost basis of 0.19%.

Beyond its success in the Ethereum space, ETHA’s inflows have propelled BlackRock to overtake Grayscale in total crypto assets under management (AUM), marking a significant shift in the industry landscape.