BlackRock’s ETH ETF has entered the top 15 in terms of inflows among new funds

The product was launched a week ago and has already raised over $600 million

31.07.2024 - 08:56

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What’s new? The Ethereum-based spot exchange-traded fund (ETF) from BlackRock, the world’s largest investment firm, has raised $618,29 million in the week since it began trading on July 23. According to Nate Geraci, the president of investment advisory firm ETF Store, this put the fund in the top 15 in inflows among all 330 exchange-traded funds launched this year.

Source: X.com

What else is known? BlackRock’s ETHA fund has been admitted to the market by the US Securities and Exchange Commission (SEC) along with 8 other funds from Bitwise, Fidelity, VanEck, Franklin Templeton, 21Shares, Invesco, and Grayscale. Most of them are also showing positive inflow results, ranging from $7,47 million to $280 million.

All of the funds, except for Grayscale’s ETHE, are new. ETHE previously operated as a trust and was later converted to an ETF with a management fee of 2,5%, the highest in the industry. This is contributing to outflows from the fund, which is affecting the overall result: since the start of trading, $1,84 billion has already been withdrawn from ETHE.

However, Grayscale has also launched an Ethereum-based mini trust that offers a fee of just 0,15%. This product has attracted $181,37 million.

Thus, the cumulative inflow to the funds today is negative: -$405,97 million. However, if ETHE is excluded, the result is +$1,44 billion.

BlackRock’s ETHA is traded on the Nasdaq exchange with a 0,25% management fee. The fund has $1,14 billion in assets under management. The fund is the top fund in terms of inflows and is second only to ETHE in terms of assets.

In addition, BlackRock acts as an issuer of the spot BTC ETF under the ticker IBIT, which is the absolute leader in terms of both inflows and assets: $20 billion and $22,53 billion, respectively.

Earlier, BlackRock said that the largest brokers will include shares of cryptocurrency ETFs in their typical portfolios for clients by the end of this year.

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