- BlackRock’s ETHA ETF added $3.83B in Ether in July, tripling its previous record and outperforming its Bitcoin counterpart, IBIT.
- ETHA ranked 17th in trading volume on July 28, placing it in the top 0.4% of all ETFs, with analysts expecting further inflows.
- Ethereum’s Pectra upgrade and stablecoin dominance, especially post-GENIUS Act, are fueling institutional interest and staking-based yield strategies.
BlackRock’s Ethereum exchange-traded fund (ETHA) started off the week on a strong note. During the weekend, the fund registered a massive $440 million in inflows, marking one of the highest influxes of capital in the month of July.
On that note, ETHA is only days away from closing its most profitable month in history. From July 1st until today, BlackRock’s Ethereum ETF added $3.83 billion in Ether into the fund, which is over 3 times the previous record.
ETHA is even outperforming its Bitcoin counterpart, BlackRock’s IBIT. While ETHa is coming off a near half-billion positive flow, IBIT has ‘only’ registered $92 million in that same period.
Moreover, trading volume appears not to have worn out on this Monday. According to ETF analyst Eric Balchunas, $ETHA is the 17th most traded ETF on July 28, placing it in the top 0.4% of all ETFs by volume for the first time ever.
He added that, because the fund was up 5% on the day and still relatively new, a large portion of its trading volume will likely translate into fresh inflows of capital over the next days.
While there are several reasons that could point to why Ethereum ETFs are hot right now, we could point to a few things that give it an edge. After this year’s Pectra upgrade, Ethereum became well-positioned to handle more complex applications and offer enhanced usability, especially at an institutional level.
On top of that, the upgrade made it possible for institutions to embrace staking services, giving Ether-based treasuries the ability to generate ongoing yields.
Ethereum’s dominance in the stablecoin space is also seen as a benefit. After the GENIUS Act was passed into law a couple of weeks ago, that dominance has become even more strategic. After all, the Ethereum Blockchain is responsible for almost half of the entire stablecoin market transactions, positioning Ethereum at the core of a growing industry.
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