Key takeaways
BlackRock ETH ETF, ETHA, hit $10 billion, making it the third-fastest growing product to hit the milestone after two spot BTC ETFs. Will ETH push higher or cool off?
U.S. spot Ethereum [ETH] ETFs (exchange-traded funds) have been on a tear recently.
In particular, BlackRock’s ETH ETF, ETHA, saw massive inflows and hit $10 billion milestone in assets under management (AUM).
This feat has even rivaled some traditional products, noted Bloomberg ETF analyst Eric Balchunas, adding that,
“$ETHA just hit $10b in one year flat, the 3rd fastest ETF to hit that mark in history after two Bitcoin ETFs $IBIT & $FBTC.”
Source: X
BlackRock’s and Fidelity’s spot Bitcoin ETFs were the 1st and 2nd to hit the milestone, followed by ETHA.
But ETHA’s inflows streak was unique in one aspect; it doubled from $5 billion AUM to $10 billion in the past two weeks of trading, a move Balchunas called a ‘God candle.’
11 weeks of ETH ETF inflows
The spot ETH ETF products have seen positive inflows for 11 weeks straight.
On the 24th of July, they saw a daily net inflow of $231 million, setting the 15th consecutive day of net inflows.
Source: Soso Value
Notably, the renewed surge in daily net inflows from early July rallied ETH from $2.4K to $3.8K, posting a 45% monthly gain.
But the rally, also backed by massive demand from ETH treasury firms, has attracted significant selling.
In fact, mid-July saw ETH profit-taking hit $1.4 billion per day on average, mirroring the levels seen during past local peaks in 2024.
Source: Glassnode
At press time, ETH traded at $3.6K, down 6% from the recent high of $3.8K amid a sharp BTC drop to $115K.
This could be a healthy retreat before taking a stab at $4K since the Open Interest was at record highs of $57 billion, underscoring high speculative interest and liquidation risk.
Source: CryptoQuant
Even so, the speculative market was still ‘neutral’ as there was no extreme retail FOMO on the Futures market, per CryptoQuant data.
This further suggested that ETH could still have room for growth before topping out or hitting a local top.
Even so, crypto analyst Benjamin Cowen warned that ETH may need to cool off, citing the overbought condition of ETH’s daily RSI.
“ETH Daily RSI rejected at around 88. I would not suggest using RSI to identify when larger trends are over, but it can be good for sometimes guessing when the market needs to cool off.”
Source: X
