BlackRock and Fidelity buy $500 million worth of Ethereum ETFs following SEC approval

BlackRock and Fidelity, two major financial firms, have purchased over $500 million worth of Ethereum (ETH) through their exchange-traded funds (ETFs) in the last 48 hours, Arkham Intelligence revealed. The transactions were primarily conducted through Coinbase Prime, an institutional crypto trading platform.

Ethereum was trading at $3,830 on December 11, with a price increase of 5.1% in 24 hours and a trading volume of $39.3 billion. These purchases follow the approval of eight spot Ethereum ETFs by the US Securities and Exchange Commission (SEC) in May, a decision that has since sparked significant institutional activity.

BlackRock’s iShares Ethereum Trust ETF (ETHA) saw total inflows of $2.93 billion, making it the largest issuer of Ethereum ETFs. Fidelity’s Ethereum Fund (FETH) follows close behind with $1.35 billion in inflows. December 10 saw the largest single-day activity, with ETHA and FETH bringing in $372.4 million and $103.7 million in trading volume, respectively.

The recent acquisitions mark the eighth consecutive day of positive inflows for these ETFs. Arkham Intelligence highlighted the extent of the buying in a social media post, noting: “PAST 48 HOURS: BLACKROCK AND FIDELITY BUYED OVER HALF A BILLION USD OF ETH.”

In addition to the recent transactions, BlackRock is seeking regulatory approval to launch spot trading options for its Ether ETFs. ETHA, currently the only Ethereum ETF listed on the Nasdaq exchange, would need further approval from the SEC, the Commodity Futures Trading Commission (CFTC), and the Options Clearing Corporation (OCC). The SEC’s decision on this matter is expected in April 2025.

Fidelity and BlackRock have continued to expand their cryptocurrency portfolios since entering the Ethereum ETF market. These developments reflect a growing trend of institutional participation in the crypto sector, especially after spot ETF approval earlier this year. The actions of both companies underscore the increasing integration of digital assets into mainstream financial systems.

Ethereum price momentum and trading activity are consistent with these large-scale acquisitions, suggesting increased market interest and growing investor confidence.