BlackRock Resumes Ethereum Acquisition as Crypto Inflows Surge Past $1.2 Billion

BlackRock, the world's largest asset manager, has resumed its acquisition of Ethereum (ETH) following a brief sell-off, signaling continued institutional interest in the cryptocurrency. This move coincides with a broader surge in crypto inflows, with Bitcoin and Ethereum leading over $1.2 billion in new capital despite escalating geopolitical tensions.

BlackRock's Renewed Ethereum Accumulation

After a surprising sell-off of 8,172 ETH, BlackRock quickly reversed course, acquiring 11,185 ETH from Coinbase Prime in two transactions totaling approximately $27.2 million. This rapid re-acquisition suggests that the previous sell-off may have been a portfolio rebalancing rather than a shift in strategy. BlackRock's consistent accumulation of ETH underscores growing institutional confidence in Ethereum as a valuable investment asset.

Crypto Market Sees Significant Inflows Amidst Tensions

Despite heightened geopolitical risks, particularly following military actions in the Middle East, digital asset investment products have recorded their tenth consecutive week of inflows. Last week alone saw $1.24 billion in new capital, pushing year-to-date inflows to a record $15.1 billion. This resilience highlights crypto's increasing appeal as a robust asset class.

Key Takeaways

• Bitcoin Dominance: Bitcoin remains the primary driver of capital, attracting $1.1 billion in inflows last week. US-based spot Bitcoin ETFs, notably BlackRock's iShares Bitcoin Trust (IBIT), played a crucial role, with IBIT alone seeing $1.23 billion in weekly inflows.

• Ethereum's Extended Run: Ethereum has extended its inflow streak to nine consecutive weeks, with $124 million in new capital last week. Since mid-April, ETH products have accumulated $2.2 billion in inflows, marking its longest streak since 2021. Spot Ethereum ETFs have been instrumental, logging inflows on 25 of the past 30 trading days.

• Institutional Confidence: The sustained inflows, particularly from major players like BlackRock, indicate a growing institutional appetite for digital assets. This trend suggests that investors are increasingly viewing cryptocurrencies as a hedge against macroeconomic uncertainties.

• Altcoin Resilience: Other altcoins also experienced modest inflows, with Solana attracting $2.78 million and XRP bringing in $2.69 million, reflecting continued, albeit cautious, interest in alternative Layer 1 solutions.

Regional Inflow Dynamics

The United States led international inflows with $1.25 billion. Germany and Canada also contributed significantly with $10.9 million and $20.9 million, respectively. Conversely, Hong Kong and Switzerland experienced combined outflows of nearly $40 million.

Sources

• Bitcoin and Ethereum inflows surge past $1.2B despite rising geopolitical risks, CryptoSlate.

• Bitcoin (BTC) and Ethereum (ETH) Lead $1,240,000,000 of Inflows to Crypto Products Despite GeopoliticalTensions: CoinShares, The Daily Hodl.

• BlackRock Resumes Ethereum Acquisition After Single Sell-Off, U.Today.