After one year since approval, US spot Ethereum ETFs have surpassed the $5 billion mark in net inflows for the first time. BlackRock’s iShares Ethereum Trust (ETHA) contributed significantly to the recent inflows.
Half a year after the overwhelming launch of spot Bitcoin ETFs, the same type of product for Ethereum (ETH) received the green light from the SEC. However, the success could not be replicated despite prominent issuers like BlackRock and Fidelity. Massive outflows from the Grayscale Trust weighed heavily on the launch – for months, Ethereum ETFs recorded net outflows in the hundreds of millions. Gradually though, the trend is reversing, as the strong inflows over recent weeks demonstrate.
Subscribe to our newsletter
The best articles of the week, directly delivered into your mailbox.
Nearly one billion in five days
With $908 million in new capital, ETH products last week surpassed $5 billion in net inflows for the first time. $675 million went into BlackRock’s ETHA, while the remaining $233 million was collected by other issuers. The $181 million per day figure is well above the average of $23 million since launch, indicating a growing appetite for Ethereum among US investors.
In total, Ethereum ETFs now stand at $5.6 billion in net inflows, with another strong start to the week. Thanks to price gains and converted funds from the Grayscale Trust, the products manage over $14 billion in assets. However, these figures pale in comparison to Bitcoin. US ETFs for the "digital gold" pulled in over $1 billion in new money on two individual days last week. In total, $52.6 billion has flowed into the Bitcoin funds, which now manage $148 billion – soon to surpass US gold ETFs.
Altcoin ETFs at the starting line
Given the rising risk appetite among US investors, the upcoming launch of various altcoin ETFs will be interesting to watch. Two weeks ago, the SEC approved an exotic Solana ETF and paved the way for funds on XRP and Cardano. The official launch was temporarily postponed by the agency, as it first aims to develop a more streamlined framework for approving crypto products.
BlackRock is holding back for now when it comes to the alternative crypto market. Fidelity, the number two issuer, is also focusing solely on a Solana ETF. The hesitation of these industry giants may slow inflows into altcoin products. Nonetheless, future ETF approvals represent an important milestone in the institutionalization of the crypto market.
