BlackRock’s iShares Ethereum Trust Surpasses $10 Billion in Assets, Third Fastest Ever

BlackRock’s iShares Ethereum Trust (ETHA) has reached a significant milestone, surpassing $10 billion in assets just one year after its launch. The fund’s rapid growth makes ETHA the fastest non-Bitcoin ETF to reach this threshold and the third-fastest in U.S. history, behind only the iShares Bitcoin Trust and Fidelity’s FBTC.

Rapid Growth and Investor Interest

ETHA’s assets doubled from $5 billion to $10 billion in just 10 days, marking an impressive surge. The trust’s growth is largely driven by increasing investor interest in Ethereum-based products and growing institutional demand. According to Bloomberg ETF analyst Eric Balchunas, ETHA saw sharp inflows, positioning it among the top five for ETF inflows over both the short and medium-term.

Ethereum ETFs Gaining Traction

Ethereum ETFs, including ETHA, are growing faster than Bitcoin ETFs. On July 17, Ethereum ETFs recorded $602 million in net inflows, surpassing Bitcoin ETFs, which saw $523 million on the same day. This shift signals a growing confidence in Ethereum’s long-term value, particularly its role in decentralized finance (DeFi) and its transition to proof-of-stake.

BlackRock’s Ethereum Trust, which tracks Ether’s market price, charges a 0.25% sponsor fee. It benefits from strong backing, including Coinbase Prime as its custodian. Ethereum’s position as a leading platform for stablecoin transactions, coupled with the regulatory support from the U.S. government, has fueled a positive environment for these funds.

Src: The Block

Future Plans for ETHA

BlackRock has applied to allow staking in ETHA, which would enable the fund to lock up some of its Ethereum holdings and generate yield. The recent clarification from the SEC that staking rewards are considered income, not securities, paves the way for this development later in 2025.

While Bitcoin ETFs still dominate the crypto investment space in terms of total assets, Ethereum ETFs are catching up quickly. ETHA’s rapid growth reflects the increasing importance of Ethereum in the crypto ecosystem and its potential as a store of value. With growing support and strategic backing, Ethereum ETFs are set to continue outperforming in the coming months.