Ether outperforms bitcoin as BlackRock ETF inflows return $84.4M

Ether rose, outperforming bitcoin, as BlackRock's spot ETF led $84.4 million in weekly inflows that ended eight consecutive weeks of withdrawals from Ethereum funds.

"We see the operating environment in digital assets becoming more and more constructive," Martin Small, chief financial officer at BlackRock, said on the firm's second-quarter earnings call. The world's largest asset manager has managed over $110 billion in assets connected to digital assets.

The $84.4 million in Ethereum fund inflows marked the first positive week since early May, according to industry data. BlackRock's iShares Ethereum Trust accounted for the majority of new capital, while Fidelity's Ether fund posted the largest outflows among competitors. Bitcoin funds attracted $197.4 million over the same period, with BlackRock's IBIT drawing nearly $292 million.

The concentrated ETF flows into Ethereum, rather than a broad market rally, suggest institutional investors are increasingly differentiating among digital assets. BlackRock has set a $500 million revenue target for its digital assets business by 2030, with tokenization of long-term investment products as a core growth pillar.

The divergence between Ether and other major tokens highlights the ETF-driven nature of the move. Bitcoin rose 4% over the same stretch, while Solana, TRON and Hyperliquid all traded lower, according to CoinGecko data as of 00:56 UTC on July 16.

The eight-week selloff had erased more than $7 billion from crypto investment products before last week's reversal. Global crypto funds attracted $281.8 million in net inflows during the week ending July 10, breaking the longest outflow streak since early 2025.

BlackRock's broader digital assets strategy rests on three pillars: bridging traditional and decentralized finance through products like IBIT, ETHA and the BUIDL tokenized fund; becoming the "stablecoin reserve manager of choice" given its management of roughly $60 billion in Circle reserves; and tokenizing long-term investment products including Treasury funds and iShares ETFs.

The asset manager has filed two SEC registration statements for tokenized money market funds, one covering a tokenized share class on Ethereum and another with daily dividend reinvestment features. Both products are designed to operate across multiple blockchains.

This article is for informational purposes only and does not constitute investment advice.