BlackRock’s Ethereum ETF Surpasses $10 Billion in Assets

TLDR

• ETHA is the third-fastest U.S. crypto ETF to reach $10 billion.
• Institutional interest drives over $10 billion in net inflows.
• Nasdaq seeks SEC approval for Ethereum staking in ETFs.

BlackRock’s iShares Ethereum Trust (ETHA) recently achieved a significant milestone. The exchange-traded fund (ETF) surpassed $10 billion in assets under management amid a rally in Ethereum’s (ETH) price.

This development places ETHA as the third-fastest U.S.-listed crypto ETF to reach this mark. This follows BlackRock’s own IBIT (Bitcoin ETF) and Fidelity’s FBTC, driven by institutional demand and Ethereum’s surge to a six-month high.

Asset Manager’s Role in Crypto ETF Milestones

BlackRock is the issuer of ETHA, managed under its iShares division. Larry Fink serves as the CEO. The world’s largest asset manager, BlackRock has a history of pioneering mainstream-accessible Bitcoin and Ethereum ETFs in the U.S.

Nasdaq is the official listing venue for ETHA. It has submitted filings to permit enhancements such as Ethereum staking. This underscores growing interest in enhancing ETF offerings.

Institutional Involvement and Funding Flows

ETHA has seen over $10 billion in net inflows, reflecting renewed institutional interest. This interest is particularly noteworthy as ETH ETFs celebrate their first anniversary. Large-scale, regulated inflows into the product highlight this trend.

Other major ETF issuers, such as 21Shares, Grayscale, Fidelity, and Franklin Templeton, are also seeking to enhance ETH ETFs with staking rewards. This indicates broader industry competition.

Rising Ethereum Prices Impact on Crypto Markets

Ethereum’s price momentum has been substantial, paralleling the ETF’s growth. This trend is evident as ETH rallied near a six-month high. Market observers are noticing Ethereum’s rising demand.

Bitcoin is indirectly affected due to competitive flows and investor allocation shifts between Bitcoin and Ethereum-based ETFs. However, there is no immediate evidence of spillovers into related altcoins.

Future Prospects for ETF-Linked Staking

BlackRock holds 2.7M ETH within the ETHA, but no direct reference was found to on-chain TVL shifts or staking activity yet. Industry filings signal an intent to allow staking of ETF-held ETH, if approved by the SEC.

Such potential regulatory approval would enable institutional staking channels. This move could redirect ETH previously used in decentralized finance (DeFi) protocols.

Related Regulatory Developments in the Crypto Space

Nasdaq has filed an SEC amendment seeking permission for ETH staking inside ETFs. The amendment states that such staking rewards would be treated as income. This highlights a regulatory trend toward accommodating staking in ETFs.

Other fund managers are pursuing similar permissions, suggesting a potential shift in how ETFs can operate within the crypto space. The regulatory landscape is being closely monitored by all participants.

“Staking in Ethereum ETFs is not new. BlackRock and the US SEC have already discussed this move before the asset manager took a decisive step to submit an application.”

@TerraNewsEN