"As a bellwether for institutional money, this move could prompt other big players - like pension funds and hedge funds - to pile in, boosting ETH's price and adoption. BlackRock's actions carry weight because they signal confidence to the broader market. Last month, for example, the asset manager's iShares Ethereum Trust (NASDAQ:ETHA) recorded its largest inflows in a month drawing 80,768 ETH, while BlackRock's total Ethereum reserves represent 1.5% of all ETH currently in circulation."
"In the second quarter, BlackRock funneled $2.3 billion into ETH spot exchange-traded funds (ETFs) versus $1.8 billion for BTC equivalents. The pivot occurred as executives cite ETH's evolving ecosystem as a hedge against BTC's maturing but stagnant role. With regulatory clarity from the SEC on ETH staking rewards, BlackRock views it as less volatile in downturns - ETH dropped only 45% in the 2024 correction, versus BTC's 55%. During the flash crash earlier this month , ETH dropped 12% compared a 14% drop by BTC."
"This isn't blind faith. BlackRock's research arm highlights ETH's deflationary mechanics post-Merge - the major update to Ethereum's consensus mechanism that switched from proof-of-work to proof-of-stake - where transaction burns outpace issuance, potentially driving scarcity. If institutions follow - and data from CoinShares shows inflows mirroring BlackRock's trends - ETH could see a 20% to 30% premium over BTC in the next six month"
BlackRock has shifted some crypto allocations from Bitcoin to Ethereum, increasing ETH holdings while trimming BTC exposure in certain funds. The asset manager directed more fresh capital into ETH than BTC over the past year, and its iShares Ethereum Trust (NASDAQ:ETHA) recorded large inflows, drawing 80,768 ETH last month. BlackRock's total Ethereum reserves represent 1.5% of ETH in circulation. In Q2, BlackRock funneled $2.3 billion into ETH spot ETFs versus $1.8 billion into BTC equivalents. Executives cite ETH's evolving ecosystem and regulatory clarity on staking rewards as reasons to view ETH as less volatile. Post-Merge deflationary mechanics and CoinShares inflows could push ETH to a 20%–30% premium over BTC if institutions follow.
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