As a seasoned crypto investor with over two decades of experience navigating the volatile digital asset market, I find the recent $500 million Ethereum (ETH) purchase by BlackRock and Fidelity to be an exciting development that underscores the growing institutional adoption of cryptocurrencies.
In the last two days, two major players in the exchange-traded fund (ETF) market, BlackRock and Fidelity, have collectively invested more than half a billion dollars in Ethereum (ETH).
The purchase was made primarily through Coinbase and its institution-focused crypto services platform, Prime.
BlackRock And Fidelity’s Collective ETH Purchase
Two major players in the ETF field, BlackRock and Fidelity, have been at the forefront of massive inflows into ETFs. Specifically, their ETHAs and FETHS saw record high investments on November 30th. According to current market data, BlackRock’s ETHA amassed approximately $372 million, while Fidelity’s FETH gathered around $103 million on December 10th. Interestingly, information from a crypto data tracking platform, Arkham, indicates that these financial titans collectively bought nearly half a billion dollars ($500 million) in Ethereum over a period of just 48 hours. This large-scale purchase was reportedly executed through Coinbase or its institutional-oriented cryptocurrency services platform, Prime.
“PAST 48 HOURS: BLACKROCK AND FIDELITY BOUGHT OVER HALF A BILLION USD OF ETH.”
The action taken by both ETF providers indicates they are making substantial moves in their investment portfolios by purchasing additional ETH following approval from the U.S. Securities and Exchange Commission. BlackRock’s iShares Ethereum Trust ETF (ETHA) leads as the largest issuer, with inflows reaching approximately $2.93 billion. Fidelity’s FETH fund follows closely, with inflows of up to $1.35 billion.
BlackRock And Fidelity’s Plans With Ethereum
BlackRock intends to initiate direct trading of Ether through an ETF, with this move expected to occur in the future. Currently, only the ETHA ETF is listed on Nasdaq. However, it’s important to note that the official announcement from the Securities and Exchange Commission (SEC) regarding this matter will not be made until April 2025. Experts suggest that BlackRock may require approval from both the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC) before proceeding with their plans.
Fidelity recently filed a proposal for a spot Ethereum ETF with the Securities and Exchange Commission. The proposal also included staking and will track the performance of Ethereum. According to the company, the Fidelity Ethereum Fund will issue shares on the Chicago Board Options Exchange (CBOE).
The Fidelity Ethereum Fund, referred to as ‘the Trust’, is a tradeable product that plans to issue shares representing ownership interests. It aims to be listed and traded on the Cboe BZX Exchange, Inc. The goal of this fund is to mimic the performance of Ether, as indicated by the Fidelity Ethereum Reference Rate, while taking into account its operational costs and other financial obligations.
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2024-12-12 14:25