BlackRock Dominates Ethereum ETF Inflows as Grayscale’s ETHE Bleeds Assets

Wall Street's crypto gold rush takes another twist as BlackRock cements its lead in Ethereum ETF inflows—while Grayscale scrambles to stop the bleeding.

Grayscale's ETHE sees mass exodus

Investors are voting with their wallets, dumping Grayscale's Ethereum Trust at a staggering pace. Meanwhile, BlackRock's shiny new ETF vacuumed up those fleeing assets like a Wall Street Dyson.

The institutional shuffle continues

Money never sleeps—it just migrates to whichever fund manager promises lower fees and better liquidity. This week's winner? BlackRock. Next week? Probably still BlackRock unless someone undercuts their 0.25% management fee.

Cynical take: When the whales play musical chairs, retail investors better hope they're not left holding the bag when the music stops.

Ethereum exchange-traded funds (ETFs) showed mixed activity from June 2 to June 20, 2025, confirming different investor sentiment toward ethereum exposure. Data from multiple ETFs issued by major financial firms shows strong inflows into BlackRock’s ETHA and Fidelity’s FETH funds, contrasted by major outflows from Grayscale’s ETHE product.

BlackRock’s ETHA fund attracted the largest net inflows during the period. Accumulating a total of 5,283.8 units, the fund averaged daily inflows of 23.1 units. This indicates sustained investor confidence in BlackRock’s Ethereum offering. Fidelity’s FETH also experienced major inflows, totaling 1,593.8 units with an average daily gain of 7.0 units.

$ETH ETF outflow $11,300,000 yesterday.

Blackrock sold $19,700,000 Ethereum. pic.twitter.com/AjrREokP3O

Other Ethereum ETFs such as Bitwise ETHW, 21Shares CETH, VanEck ETHV, and Invesco QETH recorded smaller but consistent net inflows. These combined contributed to an aggregate total of 3,913.5 units added across the funds, signaling steady demand for diversified Ethereum ETF products.

BlackRock’s position as the top inflow recipient aligns with its broader strategy to dominate crypto investment products, benefiting from institutional trust and comprehensive fund management. Fidelity’s growth in FETH highlights continued interest from investors seeking reliable Ethereum exposure within regulated investment vehicles.

Grayscale ETHE Experiences Notable Outflows

In contrast, Grayscale’s ETHE product faced big redemption pressure. The total net outflow reached -4,285.4 units, with an average daily withdrawal of 18.7 units. This large-scale return signals a shift away from Grayscale’s ETHE, possibly reflecting investor preference for newer or more competitive Ethereum ETF options.

While Grayscale’s ETHE suffered redemptions, the company’s ETH product showed modest gains with net inflows totaling 748.7 units. This split suggests selective investor confidence within Grayscale’s Ethereum product range, favoring ETH over ETHE during this period.

The holdings further point out Grayscale’s scale, with ETHE starting at 9,199.3 units and ETH at 1,022.5 units. Despite substantial redemptions, Grayscale remains a significant player in Ethereum ETFs, though facing growing competition.

Daily Flow Volatility Reflects Market Dynamics

The instability of daily net flows over the period indicates fluctuations in investor behaviour and the markets. The biggest combined inflows were recorded on June 11, at 240.3 units of most ETFs. June 20, however, resulted in an overall net outflow day, with BlackRock’s ETHA leading the outflow with 19.7 units. This element has been partially cancelled out by smaller inflows from VanEck through its ETHV and Grayscale through its ETH.

Conversely, outflows of Grayscale ETHE might suggest a competitive effect or worry among investors regarding the funds’ performance or composition. Such large redemptions usually push fund managers to reconsider their offerings or how they approach investors.