Key Takeaways
- Blackrock led $211.49M into bitcoin ETFs and $53.75M into ether funds on Tuesday.
- IBIT captured 80%+ of bitcoin inflows, deepening Blackrock’s grip on crypto ETF demand.
- ETHA’s 1-for-3 split on Oct. 6 could lift shares near $42 and cut trading costs to 2 bps.
Blackrock Plans 1-for-3 ETHA Split After $42M Inflow
The institutional bid widened across the crypto ETF market. Bitcoin funds logged a second strong session, ether recovered from Monday’s withdrawal, and no major product reported an outflow in either category.
Blackrock again set the pace. Its funds captured most of the new capital flowing into both bitcoin and ether products.
Blackrock Drives Broad Crypto ETF Gains
Bitcoin ETFs recorded $211.49 million in net inflows across five funds. Blackrock’s IBIT led with $170.35 million, accounting for more than 80% of the daily total. Fidelity’s FBTC followed with $19.58 million.
ARK 21Shares’ ARKB added $9.17 million, while Bitwise’s BITB attracted $8.72 million. Morgan Stanley’s MSBT completed the gains with a $3.68 million inflow. No bitcoin ETF recorded a withdrawal. Total trading value reached $1.57 billion, and combined net assets closed at $78.26 billion.
Bitcoin ETFs’ combined inflows for the first two trading days in August have already exceeded the total net inflows for July. If sustained, this could lead to broad inflow recovery for bitcoin ETFs in August.
Ether ETFs also returned to positive territory, drawing $53.75 million across four products.
Blackrock’s ETHA dominated with a $42.46 million addition. Fidelity’s FETH received $9.34 million, while Bitwise’s ETHW and Morgan Stanley’s MSSE added $1.34 million and about $605,000, respectively. The category recorded no outflows. Total value traded reached $387.95 million, with net assets ending the session at $10.32 billion.
Solana ETFs brought in $1 million, entirely through Morgan Stanley’s staking-focused MSOL. Trading value totaled $31.08 million, while net assets closed at $875.26 million.
XRP and HYPE ETFs recorded no net creations or redemptions. XRP fund assets ended at about $1 billion, while HYPE products closed with $258.21 million.
Blackrock Moves to Lift ETHA’s Share Price
BlackRock’s iShares Ethereum Trust ETF (ETHA) is preparing for a one-for-three reverse share split, according to a regulatory filing.
The split is scheduled to take effect on October 6. Every three ETHA shares held as of the October 5 record date will be consolidated into one share. The change will increase the fund’s per-share net asset value while leaving each investor’s total holding value unchanged.
ETHA has traded around $14 after falling alongside ether this year. The reverse split would lift the share price to roughly $42 at current levels.
Bloomberg Intelligence analyst Eric Balchunas said the higher share price could reduce ETHA’s effective trading cost by narrowing spreads. He estimated that transaction costs could fall from roughly seven basis points to about two.
That focus on execution costs highlights the pricing pressure ETFs are placing on traditional crypto trading platforms. For investors entering through brokerage accounts, lower spreads are becoming another source of competition alongside custody, liquidity and regulatory access.
