BlackRock ETF Attracts $4 Billion in Cryptocurrency Trading
After years in the shadow of Bitcoin, Ether – a cryptocurrency linked to the Ethereum blockchain – is experiencing a sudden surge as retail traders dive into digital assets.
One of the main beneficiaries is the iShares Ethereum Trust ETF, a fund on track to record the fifth-largest inflow this month among the more than 4,000 ETFs traded in the United States.
It's a remarkable achievement for a product launched just a year ago, highlighting the momentum of cryptocurrencies.
The rally is based on a familiar speculative fuel: a 50% price increase, a regulatory green light, and a growing belief in a tokenized future. None of this, however, guarantees stability.
The momentum – and not the widespread adoption of the underlying Ethereum network – drives the inflows. But for now, the market reacts as if belief alone is sufficient.
"It’s the momentum driven by the market and the euphoria we are seeing right now," said Brian Stutland, manager at Equity Armor Investments, a company that manages over $160 million in assets and invests in cryptocurrencies. "Whether this justifies itself, I'm not so sure, but Ethereum has certainly gained some momentum."
On Wall Street, Ethereum's grand proposal of serving as the backbone for stablecoins, tokenized assets, and programmable finance has always been treated more as a theoretical experiment than as a reality for investments.
However, with billions of dollars in new ETF inflows, companies adding Ether to their balance sheets, and support from Wall Street's largest issuer in trading, this project has suddenly returned to the table.
Source: Bloomberg