Blackrock Dominates Crypto ETF Inflows as Bitcoin and Ether Funds Surge

Blackrock's influence on the crypto market continues to grow as its iShares Bitcoin Trust (IBIT) took in $170.35 million, accounting for over 80% of the total inflows into bitcoin exchange-traded funds (ETFs). The category saw a net inflow of $211.49 million across five funds, with Fidelity's FBTC following close behind with $19.58 million.

Meanwhile, ether ETFs also returned to positive territory, drawing in $53.75 million after Monday's withdrawal. Blackrock's ETHA led the way with a $42.46 million addition, while Fidelity's FETH received $9.34 million.

The one-for-three reverse share split of ETHA, set to take effect on October 6, could have a significant impact on the fund's per-share net asset value and trading costs. According to Eric Balchunas, Bloomberg Intelligence analyst, this could reduce transaction costs from roughly seven basis points to about two.

The institutional bid for crypto ETFs continues to widen, with no major product reporting an outflow in either category. The combined inflows for the first two trading days in August have already exceeded July's net inflow of $381.35 million.