Ethereum Adoption Grows As BlackRock ETF Secures 1 Million ETH
The holdings of BlackRock’s iShares Ethereum Trust ETF (ETHA) have reached 1 million ETH, worth more than $4 billion. This milestone was achieved on December 18, 2024, a remarkable feat for the fund, which was launched just six months ago in July.
ETF leads among new ETF launches as institutional interest in cryptocurrencies grows Ethereum product.
Institutional interest rises
BlackRock’s growth holding The Ethereum ETF is part of a larger trend of large companies investing in cryptocurrencies. Billions of dollars invested in new Bitcoin and Ethereum exchange-traded funds in 2024.
According to blockchain tracker Lookonchain, ETHA currently holds 1,025,378 ETH, making it the first new Ethereum ETF to reach this milestone. In comparison, Grayscale’s Ethereum ETF contains approximately 476,000 ETH.
break in: #blackrockThe iShares Ethereum Trust ETF currently holds over 1 million coins $ETHa total of 1,025,378 $ETH($4.04B).https://t.co/sefS6WTlHz pic.twitter.com/kvd7KY24zQ
— Lookonchain (@lookonchain) December 18, 2024
Growth in assets under management (AUM) is particularly impressive given the initial difficulties experienced Ethereum ETF at launch. Many products have seen little inflow as they compete with larger funds such as Grayscale’s ETHE.
Starting in September 2024, a major shift occurs. Market sentiment strengthens significantly following political events such as Donald Trump’s election victory. Reports show that net inflows into Ethereum ETFs exceeded $850 million last week.
Ethereum’s promising future
Experts believe that rising interest could herald a bright future for Ethereum. Juan Leon, senior investment strategist at Bitwise Asset Management, believes that Ethereum will rebound in 2025. He said real-world asset markets could generate more than $100 billion in annual fees for Ethereum, far exceeding its current earnings.
The current influx of funds into Ethereum ETFs reflects new confidence from institutional investors. CoinGlass data shows that these products have received significant investment recently, with total assets in multiple Ethereum ETFs exceeding $14 billion. This trend shows that more and more investors want to acquire Ethereum without having to manage their own wallets.
Looking to the future
BlackRock’s head of digital asset research warned that while the trend is encouraging, it may take some time for Ethereum products to catch up to Bitcoin products. As the market and regulatory environment change, the path forward remains difficult.
Still, with increasing institutional support and rising interest from traditional financial entities, the outlook for BlackRock’s ETH ETF and the broader cryptocurrency market appears promising as we head into 2025.
Featured images from DALL-E, charts from TradingView
