Ethereum

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BlackRock’s Ether exchange-traded fund (ETF) has reached approximately $1 billion in net inflows, underscoring its lead among rival ETF ETFs, according to data from fund researcher Morningstar shared with Cointelegraph.&nbsp;
According to Morningstar, the iShares Ethereum Trust (ETHA) has pulled in $992 million in net inflows, putting the fund on track to surpass the $1-billion mark imminently.&nbsp;
“It’s very likely, but not a certainty” that ETHA will crest $1 billion in net inflows by close of market on Aug. 21, Bryan Armour, director of passive strategies research at Morningstar, told Cointelegraph. “I believe a single creation unit would put it over the top.”
The Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="" target="_self" text="null">ETH</a>) ETF’s net assets are slightly below $1 billion — $837,898,429 as of mid-day Aug. 21 — because of ETH’s underperformance since ETH ETFs started trading in July.
“Two things impact net assets: net flows and performance. Poor performance has kept net assets much lower than total net flows into the fund,” Armour said.&nbsp;
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 <img alt="BlackRock’s iShares Ethereum Trust approaches $1B in net inflows — Morningstar" name="" src="https://s3.cointelegraph.com/uploads/2024-08/ETHAInflows">
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 Ether (ETH) has underperformed since ETHA’s launch. Source: iShares
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Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-etfs-expand-new-asset-types-indexes-grayscale-executive" rel="null" target="null" text="null">Crypto ETFs will expand to new asset types, indexes — Grayscale executive</a>
Fund issuers say ETH ETFs are <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-adoption-financial-advisers" rel="" target="_self" text="null">gaining surprising traction among registered investment advisors</a> (RIAs), who direct up to half of fund flows in the $9-trillion ETF market.
“A pleasant surprise to me has been the significant interest from the adviser community” in ETH ETFs, Kyle DaCruz, director of digital assets product for asset VanEck — an asset manager that sponsors crypto ETFs — told Cointelegraph.
DaCruz said advisers find Ether “easier to value and explain to their clients” than Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="" target="_self" text="null">BTC</a>) because the blockchain network “is cash flow producing” and resembles a technology stock. Ethereum validators earn fees in ETH for processing network transactions.&nbsp;
According to Morningstar data, net assets in ETH ETFs stood at approximately $7.3 billion as of the close of the market on Aug. 20.&nbsp;
Grayscale Investments, the largest crypto fund issuer with approximately $25 billion in assets under management, anticipates that more crypto ETFs will soon hit the market.&nbsp;
“We’re going to see a number of more single asset products, and then also certainly some index-based and diversified products,” Dave LaValle, Grayscale’s global head of ETFs, <a data-ct-non-breakable="null" href="https://www.sec.gov/Archives/edgar/data/1588489/000095017024095366/etf_bild_project_8.12.20.htm" rel="nofollow noopener" target="_blank" text="null">said</a> on Aug. 12
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/11-critical-moments-ethereum-history-that-made-eth-no2-blockchain/" rel="null" target="null" text="null">11 critical moments in Ethereum’s history that made it the No. 2 blockchain</a>

BlackRock’s iShares Ethereum Trust approaches $1B in net inflows — Morningstar

Cointelegraph

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