BlackRock Ethereum ETF Surpasses 3 Million ETH Holdings as Institutional Demand Surges

• BlackRock’s ETHA hit 3 million ETH holdings and gained 50% in July after massive institutional buying sprees.
• The SEC reviews ETH staking proposals to let investors earn extra yields from their ETF holdings.
• Ethereum ETFs now control 13% of crypto ETF market share, while Bitcoin’s dominance dropped from 90% to 82%.

BlackRock’s iShares Ethereum Trust (ETHA) achieved a significant milestone on July 29, crossing 3 million ETH in total holdings after acquiring 59,309 ETH worth $223 million. The fund’s assets under management now exceed $11.1 billion, reflecting unprecedented institutional appetite for Ethereum exposure.

The Ethereum ETF has demonstrated remarkable momentum throughout July, accumulating 1.23 million ETH. This represents 40% of the fund’s holdings acquired in four weeks. Trading volume reached $1.1 billion on Tuesday alone, signaling strong investor interest in the cryptocurrency asset class.

ETHA share prices have responded positively to the increased demand, climbing over 50% in the past month and approaching the $30 threshold. The price performance underscores growing confidence in Ethereum’s long-term prospects among traditional investors.

SEC Staking Approval Could Drive Additional Yields

The U.S. Securities and Exchange Commission recently acknowledged BlackRock’s ETH staking proposal for the Ethereum ETF. Industry experts anticipate potential approval by year-end, allowing ETF issuers to generate additional returns through staking mechanisms.

Staking approval would enable BlackRock to pass extra yields to ETHA investors, potentially attracting more institutional capital to Ethereum ETFs. The development coincides with the SEC’s recent approval of in-kind redemptions for Bitcoin and Ethereum exchange-traded funds.

Ethereum ETFs Gain Market Share Against Bitcoin Dominance

Bloomberg Senior ETF Strategist Eric Balchunas noted that Ethereum ETFs are capturing increased market share within the cryptocurrency ETF sector. Bitcoin ETFs currently hold 82% of total crypto assets under management, down from 90% two months ago. Ethereum’s share has risen to 13% and continues expanding.

BlackRock’s ETHA leads the Ethereum ETF sector, contributing $223 million of the net inflows recorded on Tuesday $218 million net inflows. The fund’s dominance highlights BlackRock’s position as the primary driver of institutional Ethereum adoption.

Market data reveals that Ethereum ETFs attracted approximately 58,000 ETH yesterday, compared to just 2,399 ETH in net new issuance by the Ethereum network. ETF demand exceeded daily ETH issuance by 24 times, demonstrating substantial institutional appetite.

Ethereum maintains strength above $3,800 at press time, supported by consistent whale accumulation during recent market volatility. The price stability reinforces positive sentiment surrounding Ethereum ETF products.

The regulatory progress, institutional demand, and strong price performance positions BlackRock’s Ethereum ETF for continued growth. With staking approval potentially on the horizon, the fund may attract additional institutional investors seeking enhanced yields from their Ethereum exposure.