NEW YORK, August 22, 2024 - BlackRock’s spot Ethereum ETF surpassed $1 billion in cumulative net inflows on Tuesday, solidifying its position as the leading choice for investors in the Ethereum space.

The iShares Ethereum Trust ETF (ETHA) launched in late July alongside offerings from seven other asset managers. However, in the competition for investor funds, ETHA has significantly outpaced its rivals.

Fidelity’s Ethereum Fund trails ETHA with $367 million in cumulative net inflows, while the Bitwise Ethereum ETF follows with $310 million and the Grayscale Ethereum Mini Trust has accumulated $227 million. Together, these three products total approximately $900 million in assets, still falling short of ETHA's individual achievements.

Since its launch, BlackRock's spot Ethereum ETF has seen no outflows despite market volatility. For instance, during Ethereum’s 22% price drop on August 5, ETHA attracted $47 million in new investments, with an additional $100 million flowing in the following day.

The contrast in inflows between ETHA and its competitors has been pronounced. On its peak day, July 30, ETHA drew $118 million, whereas Fidelity’s Ethereum Fund received only $8.6 million in inflows, according to Farside Investors.

Despite ETHA’s impressive performance, it has not reached the same level of popularity as BlackRock’s spot Bitcoin ETF, which launched in January and exceeded $1 billion in cumulative net inflows within just five trading days. ETHA took 21 days to achieve the same milestone.

Overall, spot Ethereum ETFs have experienced $440 million in outflows, primarily driven by Grayscale’s Ethereum Trust, which has seen $2.4 billion in cumulative net outflows since transitioning from a closed-end fund. Analysts attribute Grayscale’s struggles to its high expense ratio of 2.5%, compared to ETHA’s and Fidelity’s lower expense ratios of 0.25%, with other more affordable options available, such as the Franklin Ethereum ETF at 0.19%.

ETHA’s early success extends beyond just Ethereum, as last week’s inflows allowed BlackRock to surpass Grayscale as the largest asset manager in the crypto space, a title Grayscale held for years.