BlackRock’s iShares Ethereum Trust (ETHA) just hit a massive milestone $10 billion in assets under management barely a year after its launch. That makes it the fastest-growing Ethereum ETF in history and the third-fastest ETF overall in the U.S., behind only two Bitcoin giants: the iShares Bitcoin Trust and Fidelity’s FBTC.
What’s more impressive? ETHA went from $5 billion to $10 billion in just 10 days. Bloomberg’s ETF expert Eric Balchunas broke the news on July 23, calling attention to the ETF’s record-breaking momentum. ETHA also ranks in the top five for ETF inflows over both the weekly and monthly periods.
Ethereum Gaining Ground on Bitcoin
While Bitcoin ETFs still hold the lead in total inflows, Ethereum is catching up fast and even outperformed Bitcoin ETFs on multiple days in July. On July 17 alone, Ethereum ETFs brought in $602 million, beating Bitcoin ETFs at $523 million for the day.
The shift hints at something deeper. Investors are showing growing confidence in Ethereum’s long-term value driven by its energy-efficient proof-of-stake model and its central role in powering decentralized finance (DeFi) applications.
Inside ETHA’s Rapid Rise
Launched in early 2024 after SEC approval, ETHA was part of a wave of eight spot Ethereum ETFs. BlackRock filed for the ETF in late 2023, choosing Coinbase Prime as its custodian. ETHA tracks Ether’s market price and charges a 0.25% sponsor fee.
The surge in demand is largely coming from institutions and investors looking for exposure to Ethereum beyond just price speculation. BlackRock is also aiming to introduce staking into ETHA, allowing a portion of the fund’s ETH to generate yield. The SEC clarified earlier this year that staking rewards are considered income, not securities a green light for yield-generating ETFs in the near future.
Why Ethereum ETFs Are Booming
According to SoSoValue, Ethereum ETFs attracted $4.7 billion in inflows this month, with ETHA leading the pack. The reason? DeFi exposure, staking potential, and growing belief in Ethereum’s ecosystem make it a powerful alternative to Bitcoin.
While Bitcoin still dominates headlines, Ethereum might be building the stronger case for the next wave of crypto-financial innovation and investors are clearly taking notice.
