BlackRock Quietly Funnels $513M Into Ethereum, Signaling Growing Institutional Confidence
BlackRock, the world’s largest asset manager, has discreetly injected $513 million into Ethereum-based funds over the past six days, according to data shared by crypto analyst Ted (@Ted_analyst) on February 7, 2025.
The investment was made through the iShares Ethereum Trust ETF (ETHA), reinforcing Wall Street’s increasing confidence in Ethereum despite lingering market uncertainty.
Institutional Inflows at Record Levels
This marks one of the largest institutional investments in Ethereum since BlackRock and Fidelity filed for a spot Ethereum ETF in May 2024. Bloomberg data shows ETHA has been averaging $85.5 million in daily inflows since July 2024, mirroring BlackRock’s aggressive crypto expansion strategy.
BlackRock previously led the charge in Bitcoin, with its IBIT spot ETF amassing $18 billion in assets within six months of launching in January 2024. If similar trends follow, Ethereum could see billions in new capital upon regulatory approval.
Market Reaction: Fear vs. Fundamentals
Despite BlackRock’s heavy accumulation, retail investors remain hesitant. Ethereum’s 30-day volatility dropped to 3.2% post-inflows, yet open interest in ETH futures fell by 12%, per CoinGlass. Meanwhile, the Crypto Fear & Greed Index stood at 28 (“Fear”), signaling market caution, while Bitcoin’s was notably higher at 45 (“Neutral”).
Analysts suggest regulatory uncertainty is fueling skepticism, particularly regarding the SEC’s ETF options review and evolving crypto tax policies.
The ETF Effect: Will Ethereum Follow Bitcoin’s Path?
BlackRock’s previous Bitcoin accumulation preceded the January 2024 ETF launch, after which BTC surged 156% to an all-time high by March 2024.
Now, with a $513 million Ethereum bet, the firm appears to be making another strategic long-term move—one that could reshape Ethereum’s role in institutional portfolios.
As traders focus on short-term concerns, asset managers are positioning ETH as a yield-generating asset post-Merge, with a potential $10 trillion tokenized market by 2030 (BCG).
Featured image from: thecoinrepublic.com