BlackRock Acquires $1.1 Billion in Ethereum to Satisfy Growing ETF Demand

BlackRock, the world’s largest asset management firm, has made headlines by acquiring a staggering 307,461 Ethereum (ETH) over a two-day span—October 17 and 18. This substantial purchase, valued at approximately $1.1 billion (equivalent to 1.53 trillion Korean won), underscores BlackRock's proactive strategy to cater to the rising market demand for its Ethereum ETF, ETHA.

According to a report by Finbold citing CoinGlass data, BlackRock's acquisition included 148,585 ETH (around $510 million) on October 17, followed by an additional 158,875 ETH (around $574 million) on October 18. With this latest addition, BlackRock’s cumulative Ethereum holdings have surged to an impressive 2.46 million ETH, carrying an estimated market valuation of $8.9 billion.

Leading the Way in Spot Ethereum ETFs

BlackRock has emerged as the undisputed leader in the spot Ethereum ETF space, recording massive inflows to its flagship fund. On October 18 alone, spot Ethereum ETFs attracted a net inflow of $425 million, with a staggering 98% (or $394.9 million) of this capital finding its way to BlackRock's ETF. Competing fund managers such as Bitwise and VanEck witnessed modest gains during this period, while industry heavyweights Fidelity and Grayscale reported net outflows, further cementing BlackRock's dominance in the sector.

Ethereum's Price Surge and Institutional Momentum

The recent activity in Ethereum markets has been accompanied by a notable rally in its price. As of this writing, Ethereum is trading at $3,556, reflecting an impressive 19.7% increase in just the past week. Bloomberg analyst James Seyffart attributes this surge to a combination of rising open interest in Ethereum futures and recovering benchmark yields, which are fueling a renewed wave of institutional interest in the cryptocurrency.

The rapid growth of Ethereum ETFs, spearheaded by BlackRock's aggressive acquisition strategy, marks a profound shift in the broader institutional approach to digital assets. This evolving trend highlights the growing recognition of cryptocurrencies as a key asset class within traditional investment portfolios.