BlackRock Boosts Ethereum Holdings as ETFs Struggle in Pre-Market

BlackRock’s $1.3B Ethereum purchase shows rising institutional demand even as 12 ETH ETFs recorded losses of up to 2.8%.

Ethereum ETFs dropped up to 2.8% pre-market while BlackRock’s accumulation could reduce supply and support future ETH prices.

Nate Geraci countered Robert Kiyosaki’s ETF warning, stressing each ETF share is fully backed by real assets amid market caution.

According to Kamran Asghar, BlackRock increased its total Ethereum holdings to $10.5 billion this week by buying an additional $1.3 billion in the cryptocurrency. At the same time, Ethereum's price was up 3.08% over the previous day, trading at $3,887.89 with a 24-hour trading volume of $34.48 billion

However, it was a challenging afternoon for Ethereum-focused exchange-traded funds (ETFs), as all 12 funds that Coinglass tracks had losses ranging from 2.6% to 2.8% from the close of the previous day.

ETF Performance and Market Data

The iShares Ethereum Trust ETF (ETHA) emerged as the largest fund, holding $10.25 billion in assets. It traded at $27.58, dropping 2.82% pre-market. This ETF also recorded the highest trading volume at $1.10 billion, showing robust investor activity. The Grayscale Ethereum Trust ETF (ETHE) followed as the second-largest with $3.46 billion in assets and $125.38 million in daily trading volume.

Source: Coinglass

The prices of Ethereum ETFs ranged, with the ProShares Ether ETF costing $66.42 and the 21Shares Core Ethereum ETF costing $18.20. With the majority clustering around 0.20% to 0.25%, expense ratios stayed low, ranging from 0.15% to 2.50%. Different fund management practices were highlighted by the differences in turnover rates.

Market Sentiment and Investor Debate

The consistent drop in ETF prices reflects broader market caution toward Ethereum-linked investment products. Nate Geraci commented on Robert Kiyosaki’s recent warning about “paper” ETFs, stressing that each ETF share directly ties to the underlying assets. He dismissed suggestions that ETFs fail to back investor holdings, calling such fears exaggerated.

Kiyosaki had previously compared ETFs to holding a picture of a gun rather than the real asset, urging investors to own physical Gold, silver, or cryptocurrencies in some situations.

Moreover, Ethereum ETFs’ collective decline contrasts with BlackRock’s aggressive ETH accumulation. Besides, the asset manager’s consistent buying could further tighten ETH supply and support price stability over time. Hence, while ETF prices reflect short-term volatility, large-scale purchases by institutional players may strengthen Ethereum’s market fundamentals.

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