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In summary
- BlackRock’s Ethereum ETF surpassed $1 billion in cumulative net inflows on Tuesday, becoming the preferred choice for investors.
- Fidelity’s Ethereum Fund comes in second with $367 million, followed by Bitwise’s Ethereum ETF with $310 million and the Grayscale Ethereum Mini Trust with $227 million.
- Despite the volatile Cryptocurrency market, BlackRock’s Ethereum ETF has seen no outflows since its debut, attracting $47 million on August 5 and another $100 million the following day.
BlackRock’s Ethereum ETF surpassed $1 billion in cumulative net inflows on Tuesday, cementing the Wall Street giant’s cryptocurrency offering as the preferred choice for investors.
The iShares Ethereum Trust ETF (ETHA) launched in late July alongside products from seven other asset managers. But when it comes to the race for investors’ money, the competition has failed to keep pace and is increasingly falling behind.
Fidelity’s Ethereum Fund currently ranks second with cumulative net inflows of $367 million. In first place is ETHA. Next is Bitwise’s Ethereum ETF with $310 million, followed by the Grayscale Ethereum Mini Trust with $227 million.
Together, the three products represent around $900 million in allocations, yet collectively fall short of ETHA’s individual progress.
BlackRock’s Ethereum ETF hasn’t seen any outflows since its debut, despite the instability in the cryptocurrency market. When the price of Ethereum plummeted 22% on August 5, investors put $47 million into BlackRock’s product—and another $100 million the next day.
At times, the disparity in flows between ETHA and its competitors has been striking. On the product’s best day, when it attracted $118 million on July 30, Fidelity’s Ethereum Fund only saw inflows worth $8.6 million, according to data from Farside Investors.
However, ETHA has not proven as popular as BlackRock’s Bitcoin ETF, which launched in January alongside competing funds. That product surpassed $1 billion in cumulative net inflows over the course of five trading days, while it took ETHA 21 days to cross that threshold.
Meanwhile, Ethereum ETFs have lost $440 million in total. Those outflows have been led by Grayscale’s Ethereum Trust, which has seen $2.4 billion in cumulative net outflows since it upgraded from a closed-end fund.
Analysts have pointed out a high expense ratio for Grayscale’s product, as the asset manager charges a 2.5% management fee to investors. At the same time, ETHA’s expense ratio of 0.25% matches Fidelity’s Ethereum Fund, while there are five other cheaper Ethereum ETFs, such as Franklin’s Ethereum ETF, with a cost basis of 0.19%.
ETHA’s early success isn’t limited to comparisons focused on the second-largest cryptocurrency. Last week, fund inflows helped BlackRock dethrone Grayscale in terms of total cryptocurrency assets under management (AUM). Grayscale had previously been the largest cryptocurrency asset manager for years.
Edited by Andrew Hayward
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