BlackRock Ethereum ETF ETHA Launches as ETH Price Climbs Above $3,500
Highlights:
- The BlackRock Ethereum ETF (ETHA) tracks Ethereum’s native token, ETH.
- ETHA has a 0.25% sponsor fee, with a one-year waiver and reduced fees for the first $2.5 billion in assets.
- BlackRock’s success with its Bitcoin ETF suggests strong potential for this new Ethereum product.
Key Points:
- The SEC approved the S-1 submission for BlackRock’s Spot Ethereum ETF.
- The iShares Ethereum Trust ETF by BlackRock started trading, with ETHA shares opening at $26.59.
- BlackRock announced that the SEC has approved their spot Ethereum ETF, and ETHA shares will track Ethereum’s native token ETH.
- The BlackRock Ethereum ETF charges a 0.25% sponsor fee, with a one-year waiver and a reduced fee of 0.12% for the first $2.5 billion in assets.
- This ETF competes directly with the Grayscale Ethereum Mini-Trust, which has a 0.15% sponsor fee.
- BlackRock manages over $10 trillion in assets, making it the largest asset manager globally. Their Ethereum ETF is expected to attract significant institutional investments.
- The BlackRock Bitcoin ETF (IBIT) saw tremendous success, with over $19.5 billion in inflows and more than $22 billion in assets under management in the first six months.
Day 1 Expectations:
- Spot Bitcoin ETFs had nearly $5 billion in trading volumes on their first day.
- The BlackRock Bitcoin ETF crossed $1 billion in assets under management within a week.
- It’s uncertain how the BlackRock Ethereum ETF will perform on its first day, but investor excitement is high.
- Ethereum’s price has risen above $3,500, and it will be interesting to see its performance by the end of the first day of ETF trading on Wall Street.
- Some analysts predict the ETF approval could lead to a “sell-the-news” event, similar to Bitcoin’s experience in January. However, the market is expected to gain momentum over time.
