BlackRock’s iShares Ethereum Trust has raced past a major mark. It now holds $10 billion in assets, just one year after launch. That pace makes it the fastest non‑Bitcoin ETF to hit that level and the third‑fastest ETF overall in US history.
ETHA’s rapid popularity also may lead to more competition. Other issuers will be watching closely to see if staking approval gives ETHA a leg up on the competition.
Lower cost fees or competing custodians may change their offerings to remain competitive. Investors will be comparing fee schedules, custodial arrangements, and staking opportunities as they place their Ether.
At the same time, Bitcoin ETFs brought in over $520 million. That shift hints at growing confidence in Ethereum’s role beyond simple currency use.
BlackRock has applied to let ETHA stake its holdings. If approved, some of ETHA’s Ethereum will be locked up to generate staking income. That decision could come later this year after the SEC clarified that staking rewards count as income, not a security.
Ethereum’s rise also reflects a broader search for yield. With bond returns still low and stock markets volatile, some investors are turning to crypto products that offer returns beyond price gains.
ETHA’s quick growth shows that institutional demand for crypto is no longer limited to Bitcoin. Based on reports, ETHA ranks first among spot Ethereum ETFs in both size and growth rate.
BlackRock’s deep pockets and respected brand do not hurt either. A large brand like BlackRock has clout when it comes to working with highly regulated assets.
With Ethereum now being seen as a broader-than-niche token, large asset managers see a chance to add crypto to mainstream portfolios.
Featured image from Pexels, chart from TradingView
