Dec 13, 2024
6thTrade
BlackRock and Fidelity have ramped up their Ethereum acquisitions, purchasing a combined total of $500 million worth of ETH in just two days, according to data from Arkham Intelligence. This significant investment was primarily facilitated through major crypto exchange and coincides with a surge in demand for Ethereum ETFs managed by both firms.
In the past week alone, BlackRock and Fidelity's Ethereum exchange-traded funds (ETFs) have seen remarkable inflows, accumulating $868.6 million, with their specific ETFs, ETHA and FETH, contributing $476.1 million to this total. Notably, the ETHA Ethereum ETF managed by BlackRock holds $3.55 billion in assets under management (AUM), while Fidelity's FETH Ethereum ETF oversees $1.56 billion in AUM.
This influx of capital into Ethereum-based products marks a significant rebound in investor interest. Following their initial launch in July, these ETFs experienced a substantial drop in demand, with weekly inflows barely reaching $250 million. However, since November 11, there has been a resurgence, with the funds pulling in $938 million in a single week for the first time since their debut.
The renewed enthusiasm for Ethereum ETFs reflects growing investor confidence in cryptocurrencies and an increased appetite for portfolio diversification. Ethereum recently surpassed Bitcoin in weekly inflows, even as Bitcoin faced a series of sell-offs after reaching the $100,000 milestone. This shift underscores Ethereum's rising prominence in the investment landscape, particularly during a period when Solana has experienced consecutive weeks of outflows, losing $14 million recently.
