BlackRock’s Ethereum ETF Surpasses $1 Billion in Total Value Amid Renewed Enthusiasm

The US market for spot Ethereum exchange-traded funds (ETFs) has seen a shift in investor sentiment, with the largest weekly inflows recorded since early August.

The surge marks the end of a six-week streak of consecutive outflows, signaling renewed enthusiasm among investors.

According to data from SoSoValue, US-based spot Ethereum ETFs saw inflows totaling $58.7 million on Friday alone.

This helped the funds achieve a net positive inflow of $84.5 million for the week, breaking a six-week cycle of net outflows.

Fidelity’s FETH Leads in Terms of Inflows

Fidelity’s FETH fund led the charge with a one-day inflow of $42.5 million, followed by BlackRock’s ETHA fund, which attracted $11.5 million.

While Fidelity’s fund recorded the highest single-day inflow, it was BlackRock’s ETHA fund that reached a remarkable milestone.

Just two months after its launch, the fund’s total net asset value surpassed $1 billion, making it only the second Ethereum ETF to achieve this benchmark, following Grayscale’s Ethereum Mini Trust.

The achievement places BlackRock’s Ethereum ETF among the top 20% of more than 3,700 ETFs available in the US market, as noted by Nate Geraci, president of The ETF Store.

Other funds also posted gains on Friday, with Bitwise’s ETHW receiving $5.4 million, Invesco’s QETH attracting $4.3 million, Grayscale’s ETH logging $2.3 million, VanEck’s ETHV taking in $2.0 million, and 21Shares’ CETH seeing $1.4 million in inflows.

However, not all funds benefitted equally; Grayscale’s ETHE experienced $10.7 million in outflows, while Franklin’s EZET saw no change in inflows or outflows.

The renewed inflows were recorded on three out of five trading days last week, marking only the second week of positive inflows since these funds were launched in late July.

The total net asset value of all Ethereum ETFs now stands at $7.4 billion, the highest since August 26.

The recent rate cut by the Federal Reserve appears to have bolstered market confidence, as Ethereum’s price has outperformed Bitcoin.

Additionally, transaction fees have surged due to increased blockchain activity, reflecting the growing interest in the world’s second-largest cryptocurrency by market capitalization.

SEC Postpones Decision on ETH ETF Options

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Nasdaq’s proposed rule change to list and trade options on BlackRock’s iShares Ethereum Trust (ETHA).

Originally expected by September 26, the SEC’s decision has now been pushed back to November 10.

As reported, the agency said the delay allows it to assess the potential implications of such a move on market stability.

The SEC’s decision to delay is not unusual.

Under Section 19(b)(2) of the Securities Exchange Act, the regulator has the authority to extend its review period for up to 90 days to thoroughly evaluate the potential risks and benefits of the proposal.

The decision comes shortly after the SEC approved options trading for BlackRock’s iShares Bitcoin Trust (IBIT), following amendments to address concerns about market manipulation and excessive risk-taking.

In addition to postponing the ruling on BlackRock’s Ethereum options, the SEC has also delayed its decision on a separate proposal by NYSE American LLC.