iShares Ethereum Trust ETF Raises Nearly $1B Since Launch

BlackRock’s Ethereum exchange-traded fund (ETF) has seen nearly $1 billion in net inflows, making it the largest product in the industry among its competitors, according to data provided to Cointelegraph by researcher Morningstar.

The iShares Ethereum Trust (ETHA) saw net inflows of $992 million, according to Morningstar, putting it on track to surpass the $1 billion mark in the coming hours. “It’s highly likely, but not certain, that the BlackRock ETF will hit that net inflow mark by the close of the market on August 21,” said Brian Armour, director of passive research at Morningstar. “I think this result takes it to a whole new level.”

The ETF’s net assets are slightly below $1 billion, at $837.89 million, as of midday on Aug. 21. “There are two things that drive that number: flows and performance. Because of the poor performance of the latter, net assets were much lower than the total net inflows into the fund,” Armour said.

Fund issuers say ETH ETFs are seeing surprising traction among registered investment advisers (RIAs). “I’ve been pleasantly surprised by the significant interest from their community,” Kyle DaCruz, chief digital asset officer at VanEck, told Cointelegraph.

He noted that Ethereum technology will attract people’s attention because the blockchain network produces a cash flow and is similar in nature to technology stocks. In addition, Ethereum validators receive a commission in ETH for processing network transactions.

According to Morningstar, the ETH ETF had net assets of about $7.3 billion at the market close on August 20. Grayscale Investments representatives, however, say that more crypto ETFs will soon hit the market.