BlackRock and Fidelity, the two largest exchange-traded fund (ETF) issuers, have made substantial moves in the cryptocurrency market, acquiring more than $500 million in Ethereum (ETH) over the past two days. According to a December 12 post by Arkham Intelligence on X (formerly Twitter), both firms executed these transactions via Coinbase Prime.
This significant acquisition follows their approval from the U.S. Securities and Exchange Commission (SEC) in May to offer Ethereum-linked investment products. The move highlights the growing involvement of major institutional players in the cryptocurrency market, particularly in Ethereum.
ETF Inflows and Growing Interest in Ethereum
BlackRock’s iShares Ethereum Trust ETF (ETHA), the largest Ethereum-focused ETF, has seen a total inflow of approximately $2.93 billion. Alongside Fidelity, ETHA has experienced inflows for eight consecutive days, indicating strong and sustained investor interest.
Fidelity’s Fidelity Ethereum Fund (FETH), the second-largest issuer, has also seen impressive growth, with inflows totaling $1.35 billion. Notably, the fund experienced its largest single-day inflow on December 10, with $202 million entering the fund.
BlackRock’s Plans for Ether ETF Spot Trading
In addition to its acquisitions, BlackRock is planning to introduce Ether ETF spot trading options, with the aim of expanding its Ethereum offerings. ETHA, which is currently the only Ethereum ETF listed on the Nasdaq, has formally requested approval from the SEC to launch these options. The decision is expected to be made by the SEC in April 2025.
However, experts suggest that BlackRock may also require approval from additional regulators, including the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC), to proceed with the launch of spot trading options.
The ongoing investment by BlackRock and Fidelity signals a growing institutional interest in Ethereum, reinforcing the cryptocurrency’s position as a key asset in the evolving digital finance landscape.
Related Topics:
