Key Points
- BlackRock’s Ethereum ETF (ETHA) has attracted over $3 billion in net inflows since its launch.
- Analysts predict a significant rally for Ethereum, with potential price targets reaching up to $15,000.
BlackRock, a powerhouse in the Bitcoin ETF market, has been garnering interest in the Ethereum ETF market. The BlackRock iShares Ethereum ETF (ETHA) has seen net inflows exceeding $1.3 billion in just ten trading days since November 29. The fund has accumulated an impressive $3.19 billion since its inception, with total net assets amounting to $3.81 billion.
Ethereum ETFs Gaining Traction
ETHA’s success is part of a larger trend in Ethereum ETFs. The Mini Ether ETF (ETH) by Grayscale and Fidelity’s FETH have also seen substantial inflows of $603 million and $1.37 billion, respectively, since their launch. All Ether ETFs have collectively pulled in $2.24 billion since their debut in late July, despite the Grayscale Ethereum Trust (ETHE) experiencing $3.5 billion in outflows during the same period.
This influx indicates an increasing demand for Ethereum-based ETFs. The spike in inflows seems to have gained traction after the election of Donald Trump, which has raised hopes for a more crypto-friendly regulatory environment.
While other asset managers are looking into altcoin ETFs, BlackRock has remained focused on its Bitcoin and Ethereum offerings. Jay Jacobs, BlackRock’s US Head of Thematic and Active ETFs, believes the potential for institutional interest in the top two crypto ETFs is immense, with the market only beginning to scratch the surface.
Ethereum’s Potential Breakout
Ethereum’s price movement has mirrored the growing demand for the linked investment funds. After bouncing back to the $4,000 mark, it is currently trading slightly lower at $3,900. With a market cap of $468 billion, Ethereum’s price outlook depends on its ability to surpass critical resistance levels.
In order to maintain its upward momentum, Ethereum must achieve a daily close above $3,930 and overcome a major resistance zone at $4,093, where selling pressure has previously been high. Failure to do so could lead to a retracement, testing support levels near $3,550.
However, market analysts remain optimistic about Ethereum’s prospects. Many predict a mega rally, with prominent traders expressing confidence in ETH’s potential. An Ethereum trader on X believes that breaking the $4,000 mark will set the stage for a rally to $10,000. Crypto analyst KALEO has set an ambitious near-term target of $15,000 for the second-largest cryptocurrency.
Similarly, VentureFounder, another popular crypto analyst, expects ETH to reach $15,937 by May 2025. For the short term, the analyst suggests that Ethereum could climb back to its all-time high of $4,900 within weeks if it records three weekly green candles.
