Institutional Ethereum Purchases: BlackRock and Fidelity Increase Commitment

In a remarkable development, BlackRock and Fidelity, two heavyweights in the financial industry, have invested over 500 million USD in Ethereum – within just 48 hours. These transactions were conducted through their Exchange-Traded Funds (ETFs) and were mostly processed via Coinbase Prime, a trading platform specifically for institutional crypto players. The Ether price reached 3,830 USD on December 11, an increase of 5.1% within 24 hours, accompanied by a trading volume of 39.3 billion USD. These investments follow the approval of eight spot Ethereum ETFs by the US Securities and Exchange Commission (SEC) in May, which has since triggered a wave of institutional activity. Particularly, BlackRock's iShares Ethereum Trust ETF (ETHA) stood out with a capital inflow of 2.93 billion USD as the largest issuer of Ethereum ETFs. Close behind is Fidelity's Ethereum Fund (FETH) with inflows amounting to 1.35 billion USD. December 10 marked the peak of activity with substantial trading volumes of 372.4 million USD for ETHA and 103.7 million USD for FETH. These investments are part of a series that now marks the eighth consecutive day of positive inflows for these ETFs. Arkham Intelligence, reporting on the overall financial situation, emphasized the significance of the recent purchases in a social media post. Beyond these transactions, BlackRock is currently seeking regulatory approval to launch spot trading options for its Ether ETFs. The ETHA, so far the only Ethereum ETF on Nasdaq, requires additional approvals from the SEC and other regulatory authorities. A decision from the SEC is expected by April 2025. Both Fidelity and BlackRock have steadily expanded their cryptocurrency portfolios since entering the Ethereum ETF market. These activities underline an increasing integration of digital assets into the mainstream financial systems. The rising Ethereum price level and the lively trading activity reflect the heightened interest and confidence of investors.