
BlackRock’s iShares Ethereum Trust Hits $1B in Net Inflows to Set New Benchmark
BlackRock’s iShares Ethereum Trust (ETHA) has just become the first US spot Ethereum ETF to see $1 billion in net inflows.
BlackRock’s iShares Ethereum Trust (ETHA) has just become the first US spot Ethereum ETF to see $1 billion in net inflows.
Amid the broader crypto market’s slowness, US spot Ether ETFs recorded an outflow of $39.21 million on Thursday.
Grayscale ETHE saw a net outflow of $31 million, reversing the previous day’s breakeven flow, likely due to concerns over Grayscale’s ability to convert ETHE shares into real Ethereum.
The recent surge in Ethereum network activity signals renewed investor interest, offering hope for Ether’s long-term price appreciation.
Presently, ETHA stands as one of the top six ETF launches of the year.
Grayscale’s ETHE, formerly holding $9B in Ether, has seen 22% outflows since its conversion. Analyst Mads Eberhardt predicts these outflows will slow by week’s end, potentially boosting Ether prices.
The positive inflow is attributed primarily to a reduction in withdrawals from Grayscale’s Ethereum Trust (ETHE).
The recent approval of spot Ethereum ETFs in several countries has been the epitome of mainstream adoption of Ether’s ecosystem in the past nine years.
The ongoing crypto correction led by Ethereum triggered nearly $300 million in liquidations, mostly involving long traders.
A report from Kaiko Research said that ETH price would be sensitive to the spot Ether ETF inflows amid the poor demand for the Ethereum futures products late last year.
The Grayscale Ethereum Mini Trust (ETH) is now the most competitive in annual sponsor fees, thus triggering a possible fee war ahead.
Grayscale has kept the distribution process of the ETH Trust shares pretty straightforward for all the existing ETHE shareholders. The ETHE shareholders won’t need to initiate any extra action to receive the ETH trust shares.
Several market analysts believe that the Ethereum price could skyrocket once the Ether ETFs go live for trading amid strong institutional demand.
Similar to GBTC, the Grayscale Ethereum Trust (ETHE) could also see massive outflows in the beginning since its currently trading at 26% discount to the NAV.
Santiment revealed that the average fee for transactions on the ETH network has been reduced to $1.12 per transaction