NEW YORK, August 21, 2024 — BlackRock’s iShares Ethereum Trust, also known as ETHA, has made history as the first US spot Ethereum ETF to surpass $1 billion in net inflows, according to data from Farside Investors.

This achievement is notable, though ETHA's journey to the $1 billion mark has been slower compared to BlackRock’s iShares Bitcoin Trust (IBIT), which hit the same milestone in just four days. Despite the more gradual pace, demand for Ethereum-based funds like ETHA is on the rise, even if it doesn’t match the explosive growth seen with Bitcoin ETFs.

The $1 billion milestone was reached after ETHA collected $26.8 million on August 20. Farside's data indicates that, on that day, only BlackRock’s ETHA and Bitwise’s Ethereum fund (ETHW) saw gains, while other competing ETFs—except for Grayscale’s ETHE—reported no inflows.

Grayscale’s ETHE has faced significant challenges, with investors withdrawing approximately $2.5 billion since it transitioned into an ETF. Similar to Grayscale’s Bitcoin fund, ETHE charges higher fees compared to other investment options, which may have contributed to the outflows.

While ETHE has consistently experienced negative flows since its debut, the pace of withdrawals has recently slowed. Outflows peaked at $484 million on the fund’s first trading day and continued at a similar rate throughout the first week, but have since decreased, with the lowest outflow recorded at $16.9 million last Wednesday.

In a significant development, BlackRock’s Ethereum and Bitcoin ETFs have now surpassed Grayscale’s in assets under management, marking the first time BlackRock holds a marginal lead in their collective holdings.