BlackRock’s $109.9M Ethereum Purchase Signals Major Institutional Interest

Asset manager BlackRock acquired a staggering $109.9 million worth of Ethereum on August 6, 2024, amid a recovering crypto market. This purchase, reported by analyst Crypto Rover, is the largest single-day acquisition observed in the recent period. BlackRock’s ETH acquisition highlights significant institutional interest in Ethereum.

The transaction data for early August reveals varying levels of Ethereum purchases. On August 1, $89.6 million worth of Ethereum was bought, while no transactions occurred on August 2. On August 5, there was a moderate purchase of $47.1 million. The most significant purchase occurred on August 6, with BlackRock buying $109.9 million worth of Ethereum. In total, the period saw $869.8 million in Ethereum acquisitions.

This substantial purchase coincides with a notable increase in Ethereum’s price. At press time, Ethereum is valued at $2,521.09, with a 24-hour trading volume of $25.68 billion. Despite a 2.14% price increase in the last 24 hours, Ethereum has experienced a 23.80% price decline over the past seven days. With a circulating supply of 120 million ETH, Ethereum’s market capitalization stands at $303.64 billion.

Elsewhere, BlackRock’s iShares Ethereum Trust (ETHA), a spot Ether ETF launched on July 23, 2024, has shown remarkable growth. In just 11 trading days, the fund accumulated nearly $900 million in total inflows, making it one of the top-performing ETFs of the year. On August 6, ETHA recorded around $110 million inflows, its third-largest single-day inflow since inception. This surge brought its cumulative inflows to $869.8 million, highlighting the fund’s strong performance despite recent market volatility.

Nate Geraci, President of The ETF Store, emphasized ETHA’s success, noting its position among the top six best-performing ETFs launched in 2024. Notably, four other top performers are spot Bitcoin ETFs, including BlackRock’s IBIT. This trend underscores the growing institutional interest in cryptocurrency-based investment products. BlackRock’s significant purchase and the success of ETHA reflect the increasing institutional confidence in Ethereum and the broader cryptocurrency market.

This period of significant purchases comes alongside regulatory developments involving BlackRock and Nasdaq. Both entities have proposed a rule change to list and trade options for BlackRock’s spot Ethereum exchange-traded fund (ETF), according to a recent regulatory filing. In July, the U.S. Securities and Exchange Commission (SEC) approved ETFs linked to the price of ether from major firms, including Franklin Templeton, VanEck, Bitwise, and 21Shares.