$10 billion reached in record time

BlackRock ETH ETF (ETHA) shakes the financial world by breaking another record: it reaches $10 billion in assets under management in just one year, thus becoming the third fastest ETF in history to hit this milestone – right behind the two Bitcoin ETFs from BlackRock and Fidelity.

Why is the milestone of BlackRock ETH ETF so significant?

The arrival of spot Ethereum ETF in the United States has revolutionized the market, but BlackRock ETHA is exceeding all expectations. Since its launch, ETHA has attracted substantial inflows, but what is surprising is the speed with which it has doubled its AUM in the last 15 days: from $5 to $10 billion. Experts call this sudden and vertical momentum a “God candle,” a signal of the strength with which new capital is converging on the reference asset of Ethereum.

The performance positions BlackRock ETHA as the third fastest ETF to reach $10 billion, after the two spot BTC ETFs launched by industry giants: BlackRock and Fidelity.

What are the numbers of Ethereum ETF: inflows and performance

Between early July and July 24, 2024, the American ETH ETF spots recorded 11 consecutive weeks of positive inflows. On July 24 alone, there were $231 million in net inflows, marking the fifteenth consecutive day of inflows.

This trend coincides with a remarkable Ethereum rally, moving from $2,400 to a high of $3,800 (+45% in one month). However, this run has also attracted increasing profit-taking: in the second half of July, daily profit-taking reached $1.4 billion, a level similar to the local peaks seen in previous bull rallies of 2024.

What is happening with the price of Ethereum?

After reaching the new local high at $3,800, ETH experienced a sharp correction, settling around $3,600 (-6%), also due to the decline of Bitcoin towards the $115,000 mark.

This pause, according to several analysts, could be healthy: the open interest on ETH derivatives markets has marked the new all-time high of $57 billion, indicating speculative levels that often precede significant corrections or even massive liquidations (that is, forced closures of leverage positions).

Is the rally at the end of the line or is there room to rise?

Despite the volatility, according to on-chain metrics and market analysis, speculative activity on ETH is not yet at extreme highs: the sentiment on futures remains “neutral,” without signs of uncontrolled retail euphoria. This suggests that we might not yet be close to a local top.

The popular analyst Benjamin Cowen, however, issues a warning: with a daily RSI rejected at level 88, the price might need to cool down before attempting further upward breaks. The market thus seems ready to continue the run, but the speculative pressure – and the risk of liquidations on derivatives – remains the real special watch of the coming weeks.

How does the ETH ETF position itself compared to the Bitcoin ETF?

The rise of ETHA ignites a new confrontation between the Ethereum world and the Bitcoin universe. The two spot BTC ETFs by BlackRock and Fidelity have reached the $10 billion threshold even more quickly, but the growth rate of ETHA in the last two weeks is unprecedented for a “non Bitcoin” asset.

Institutional interest – that is, from funds, banks, and asset managers – has literally driven the ETH market, in a way that seemed impossible to many analysts just a few months ago.

What are the risks and opportunities for ETH at the current level?

The expansion of spot ETFs on Ethereum offers investors regulated exposure and instant liquidity. However, the increase in open interest and speculation highlighted in the source suggests that the liquidation risk on derivative markets is growing.

Despite the recent sell-offs, sentiment still does not show the “FOMO” (fear of missing out) typical of market tops: there is room for further movements, but vulnerability to rapid declines if the market overheats excessively.

According to the source, the coming weeks will be crucial to understand if the rally can resume towards the $4,000 mark or if profit-taking and high volatility will prevail.

What changes for investors and the crypto market?

The exploit of ETHA is a confirmation: Ethereum has now entered the pantheon of mainstream assets, at least as far as regulated instruments are concerned. The trend could lead to new ETFs on other cryptocurrencies, but also increase attention on the systemic risks of derivatives.

Institutional investors are now key players in the ETH market, with flows that can cause sudden price changes. The outlook remains bull but is influenced by technical factors and the delicate balance between enthusiasm and speculative prudence.

What to expect in the coming weeks?

The record of BlackRock ETH ETF marks a historic turning point for Ethereum and the entire sector. It increases the pressure on traditional institutions and establishes the legitimization of ETH as a top-tier investment class.

However, the future depends on how the spot and derivatives market will withstand the new volumes and the behaviors of institutional investors. It remains essential to follow the developments of spot Ethereum ETF, the movements of the open interest, and the on-chain sentiment.

Everything can change in the coming weeks: stay updated to not miss the most decisive developments in the main channels of the community.