BlackRock’s Ethereum ETF becomes third-fastest ETF to reach $10B milestone

BlackRock’s iShares Ethereum Trust has reached $10 billion in assets under management, just one year after its launch.

The milestone makes ETHA the fastest non-Bitcoin ETF to reach that threshold and the third-fastest overall in U.S. ETF history, behind only the iShares Bitcoin (BTC) Trust and Fidelity’s FBTC.

The update was shared on July 23 by Bloomberg ETF analyst Eric Balchunas, who wrote on X that ETHA doubled from $5 billion to $10 billion in just 10 days. “It went from $5B to $10B in just 10 days,” he said, highlighting ETHA’s sharp inflow momentum. ETHA is also in the top five ETF inflows within one week and one month timeframes.

Growing investor interest in Ethereum-based products and institutional demand have been the main drivers of ETHA’s asset growth.

ETHA launched in early 2024, following its approval by the U.S. Securities and Exchange Commission alongside seven other spot Ethereum (ETH) ETFs. BlackRock filed for the product in November 2023 and selected Coinbase Prime as its custodian. The ETF charges a 0.25% sponsor fee and tracks the market price of Ether, minus expenses and liabilities.

Ethereum ETFs outpace Bitcoin ETFs in pace of growth

According to SoSoValue data, Ethereum ETFs have seen strong monthly inflows totaling $4.7 billion, with ETHA leading in both volume and growth rate. On July 17, Ethereum ETFs collectively recorded $602 million in net inflows, outpacing Bitcoin ETFs, which took in $523 million on the same day. 

This rotation, according to analysts, is a reflection of growing confidence in Ethereum’s long-term value, which includes its proof-of-stake architecture and its role in decentralized finance. 

BlackRock has applied to allow staking in ETHA, which would lock up some of its Ethereum holdings and enable the fund to generate yield. A SEC decision earlier this year clarified that staking rewards are considered income rather than securities, paving the way for approval later this year.

Although Bitcoin funds continue to dominate cumulative inflows, Ethereum ETFs are growing at a faster rate thanks to DeFi exposure and possible staking returns.