BlackRock Ethereum ETF Posts $363M Inflows, Signaling Market Shift

TLDR

• BlackRock’s Ethereum ETF recorded its largest daily inflows in 30 days, amounting to $363 million.
• The surge in inflows follows a challenging period of outflows earlier in the month.
• Ethereum ETFs collectively managed $30.35 billion in assets as of September 12, with BlackRock holding over half.
• Institutional interest in Ethereum is growing, with Ethereum-based products seeing significant inflows.
• Analysts predict Ethereum could surpass Bitcoin in the long term due to its staking yield and growing digital asset treasuries.

BlackRock’s Ethereum ETF (ETHA) has seen a significant bounce with its largest daily inflows in 30 days. On September 15, ETHA experienced $363 million in fresh inflows, marking the biggest single-day intake in a month. The surge pushes the ETF’s trading volume to $1.5 billion, signaling a shift in investor sentiment. This rebound follows a period of outflows earlier this month, hinting at renewed confidence in Ethereum.

Ethereum ETF Records Biggest Inflows in a Month

The BlackRock ETH ETF saw inflows of 80,768 ETH on September 15, a remarkable $363 million increase. This influx came after a rough start to the month, where ETHA faced $787 million in outflows. The influx shows that investors are regaining confidence in Ethereum, with ETHA trading at $1.5 billion in volume. The large inflows come as Ethereum’s market fundamentals appear to stabilize, with significant institutional interest growing again.

ETHA’s turnaround is not isolated. Other Ethereum-based ETFs, like Fidelity’s FETH, saw strong contributions as well. Fidelity’s product led the pack with $381 million in net inflows last week. BlackRock’s ETHA added $165 million during this period, further strengthening Ethereum’s institutional backing.

Ethereum’s recovery shows in broader market shifts. The total assets under management in Ethereum ETFs grew to $30.35 billion by September 12. BlackRock commands over half of this total with $17.25 billion, representing nearly 3% of Ethereum’s market cap.

Ethereum’s Potential to Outshine Bitcoin in the Long Run

Geoffrey Kendrick, Standard Chartered’s head of digital assets research, suggests Ethereum could surpass Bitcoin in institutional adoption. Kendrick highlights Ethereum’s staking yield and the growing digital asset treasuries (DATs) as key drivers. Ethereum DATs already hold more than 3.1% of the total ETH supply. As these treasuries grow, Ethereum’s value proposition could become more attractive to long-term investors.

Ethereum’s established treasury ecosystem gives it a significant edge over Bitcoin and Solana, Kendrick adds. Ethereum’s ability to provide staking rewards presents a unique advantage in the institutional space. These elements could help Ethereum gain greater traction as more companies adopt digital assets on their balance sheets.

ETH investors have started to recognize Ethereum’s long-term potential in this growing market. With growing support from treasuries, Ethereum might witness steady price increases in the coming years. The BlackRock ETH ETF’s recent inflows underscore this shift in sentiment, as institutional interest strengthens.

Analysts Predict Ethereum’s Price Surge with Sustained Institutional Support

Crypto analyst Michael van de Poppe suggests that Ethereum’s volatility could increase in the short term. However, he also notes that Ethereum’s potential for long-term gains remains intact. If ETH holds key support levels, it could see a price surge to the $5,000-$5,200 range.

Ethereum’s price could face short-term corrections, with the $4,100 mark a critical support level. A broader market correction might bring Ethereum down to $3,600–$3,800, but long-term investors see value in the digital asset. If Ethereum overcomes resistance levels between $4,400 and $4,600, ETH may experience renewed momentum in the market.

The recent strong inflows into BlackRock’s ETH ETF show the growing confidence in Ethereum. With continued institutional support and strong fundamentals, Ethereum’s price trajectory could be on the path to higher values.

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