BlackRock has led Ethereum (ETH) acquisitions, with more than $500 million flowing into Ethereum ETFs in the past few days.
Fidelity joined BlackRock in expanding ETH holdings, as on-chain data shows significant inflows coinciding with renewed interest in the cryptocurrency market.
Record-breaking Ethereum ETF inflows
Ethereum ETFs have experienced strong inflows since November 21, with net inflows surpassing $1.29 billion in the past week. A peak daily inflow of $428.44 million was recorded on December 5, highlighting a growing appetite for ETH-backed investment products. These inflows gained momentum following the U.S. elections, which boosted both crypto and traditional financial markets. Demand has been bolstered by positive market sentiment and discussions surrounding an “altcoin season.”
Ethereum ETF switched to inflows in November, surpassing the flows into Bitcoin funds. | Source: CoinAnk
The surge in ETF activity is part of a broader trend as investors position themselves for potential long-term growth. Ethereum’s performance has fueled optimism, with prices hovering below the $4,000 mark.
BlackRock and fidelity expand on-chain ETH holdings
BlackRock and Fidelity have emerged as major players in the ETH market. BlackRock’s on-chain ETH holdings surpassed 820,000 ETH, following a sharp acquisition acceleration over the past 10 days. Fidelity, meanwhile, increased its ETH holdings to 114,630 ETH, marking a significant shift after months of slower growth.
The BlackRock Ethereum ETF, or ETHA, has grown to $3.55 billion in assets under management. Fidelity’s Ethereum ETF has reached $1.56 billion, further solidifying its presence in the market. Despite these developments, Grayscale remains the largest institutional ETH holder, with $5.56 billion in the Grayscale Ethereum Trust and $1.75 billion in its Ethereum Mini Trust.
Staking opportunities and market implications
Ethereum’s staking capabilities present unique opportunities for future ETF innovation. While traditional ETFs require liquidity to accommodate investor withdrawals, speculation exists about the possibility of staking-enabled ETFs. Currently, most ETFs passively hold ETH without participating in staking or decentralized finance (DeFi) protocols due to liquidity concerns and counterparty risks.
The broader Ethereum network continues to make strides, with its fee-burning mechanism reducing inflation to just 0.12%. Weekly ETH issuance has dropped to 3,569 tokens compared to months of higher output earlier in the year. As more ETH is locked in staking and liquidity pools, the asset’s scarcity may increase, further boosting investor confidence.
Ethereum remains a vital base layer for its Layer 2 ecosystem, although challenges persist within the network. Nonetheless, the recent surge in demand for ETFs highlights the growing appeal of ETH among traditional and institutional investors.
The post BlackRock Drives Ethereum (ETH) Demand with Over $500M in Recent ETF Inflows first appeared on Coinfea.
