BlackRock Ethereum ETF Sees Surge in Inflows

Although BlackRock’s IBIT is traditionally a leader in the crypto ETF market, the company’s Ethereum product had higher inflows this week, marking the second-highest inflows of all US ETFs.

After weeks of aggressive corporate Bitcoin investment, Ethereum is emerging as a popular choice, potentially enhancing the token’s market presence during a possible altcoin season.

Ethereum ETFs on the Rise

IBIT, BlackRock’s Bitcoin ETF, has been celebrated as the “greatest launch in stock exchange history.” Last month, it became BlackRock’s largest ETF by fee revenues and may surpass Satoshi’s BTC wallet in under a year.

However, this week, BlackRock’s Ethereum ETF outperformed with even greater inflows:

Bitcoin ETFs have enjoyed strong institutional support, fueled by aggressive corporate investments, making Ethereum’s rise surprising. Recent cooling in BTC ETF inflows coincides with Bitcoin’s all-time high slowing market momentum, while Ethereum ETFs maintain steady growth.

Even temporary pauses in Ethereum’s growth haven’t significantly altered the trend, as corporate investments continue to surge. Most corporate crypto holders still favor Bitcoin, which presents notable downsides. Thus, ETH emerges as a less crowded alternative, with Wall Street investment not completely dominating the market.

Additionally, Ethereum maximalism is gaining traction. This became particularly relevant for BlackRock when its Head of Digital Assets departed to join an ETH treasury company. This executive played a key role in BlackRock’s crypto ETF strategies, believing SharpLink would better allow him to focus on Ethereum.

As institutional investments in Ethereum rise, Bitcoin’s market dominance has decreased by more than 5% in July.