BlackRock has significantly increased its Ethereum holdings with a $1.3 billion purchase, elevating its total assets under management to $10.5 billion. This move comes despite simultaneous pre-market declines of up to 2.8% across Ethereum exchange-traded funds (ETFs).
Leading the ETF market, BlackRock’s iShares Ethereum Trust ETF (ETHA) holds $10.25 billion in assets. However, it recorded a 2.82% pre-market dip to $27.58 per share, alongside $1.10 billion in trading volume.
The downward pressure on Ethereum ETFs stems from cautious investor sentiment amid broader market volatility. BlackRock’s substantial accumulation counters this trend, reflecting institutional conviction in Ethereum’s long-term value and fundamentals.
Analysts note such large-scale institutional purchases may tighten Ethereum’s available supply. This reduction could foster price stability and support future growth by limiting market liquidity.
Notably, all Ethereum ETF shares remain fully backed by actual ETH assets, directly addressing concerns about potential ‘paper’ ETFs lacking tangible cryptocurrency reserves.