BlackRock’s ETH ETF becomes third-fastest ETF to hit $10B

BlackRock’s U.S.-listed Ethereum ETF is now among the fastest-growing funds in history. Bloomberg Senior ETF analyst, Eric Balchunas disclosed this, noting that BlackRock iShares Ethereum Trust (ETHA) has passed $10 billion in assets.

According to Balchunas, ETHA is the third-fastest ETF to hit the $10 billion mark, coming behind two spot Bitcoin ETFs, BlackRock IBIT and Fidelity FBTC. It took ETHA 251 days to hit that mark, compared to 34 days for IBIT and 53 days for FBTC.

Interestingly, $5 billion of the assets under management (AUM) for ETHA entered in just ten days in what Balchunas described as “ETF assets equivalent of a God candle,” a term used by analysts to describe a massive increase in price of tokens.

With the move, ETHA has been in the top 5 ETFs for netflows for the past month and week. This highlights the drastic change in ETH’s fortunes. While Bitcoin spot ETFs dominated investor attention in the first half of the year, recent market activity shows investors are warming up to the ETFs of the second-largest cryptocurrency.

The ETF’s breakthrough comes as Ethereum’s market sentiment improves. Prices have risen recently, with ETH gaining more than 50% in the past week and approximately 105% since mid-May. On the other hand, Bitcoin has only seen a 24% increase in the same period in the last 30 days.

Ethereum ETFs continue with consecutive inflows

Meanwhile, the performance of BlackRock ETHA has spilled over to other ETH ETF products.  The products now have 14 days of consecutive inflows starting from July 3, during which the products pulled in around $4 billion in assets under management.

The period also saw ETH ETFs set new records for daily inflows, with the products pulling in $726.74 million on July 16, marking the largest daily inflow since their debut. The second largest and third largest happened within this period, with $602 million on July 17 and $533.8 million on July 222.

While ETH ETFs are commanding inflows, Bitcoin ETFs have been struggling in the past few days, with three consecutive days of outflows this week. Although the outflows are relatively minimal, they highlight changes in market sentiment towards ETH ETFs and the underlying asset itself.

ETH sees surge above $3,700 after recent pullbacks

Meanwhile, the consistent positive flow for ETH ETFs has had a positive impact on ETH itself, with the token gaining more than 4% in the last 24 hours. This marks a reversal of recent pullbacks for the token after it fell as low as $3,500 following the rally that took it past $3,800.

With its recent gains, ETH is back above $3,700 after over $41 billion in trading volume over the past 24 hours. It has also increased ETH’s dominance to 11.52%, even though Bitcoin is back to over 60% dominance. The asset price ratio versus Bitcoin increased 2.65% in the past day as well, showing that it is outperforming the flagship asset.

Interestingly, institutional interest is not the only driver of ETH price; the network is also seeing a surge in on-chain activity. According to Growthepie data, Ethereum mainnet added $500 million in stablecoins on July 23, and its daily transaction count recently hit 24.69 million, an all-time high.

All this is happening with the ten-year anniversary of the Ethereum network being only a  few days away, and many expect more milestones for the network in the coming days.

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