Institutional demand expanded across the cryptocurrency ETF market. Bitcoin funds demonstrated a second consecutive strong session, Ethereum recovered from Monday's outflow, and none of the major products reported outflows in any category.
BlackRock once again set the pace. Its funds attracted the majority of new capital flowing into both Bitcoin and Ethereum products.
BlackRock Drives Broad Growth in Crypto ETFs
Bitcoin ETFs recorded a net inflow of $211.49 million across five funds. The leader was BlackRock's IBIT with $170.35 million, accounting for over 80% of the total daily volume. It was followed by Fidelity's FBTC with $19.58 million.
ARK 21Shares' ARKB fund attracted $9.17 million, and Bitwise's BITB brought in $8.72 million. Rounding out the list was Morgan Stanley's MSBT fund with an inflow of $3.68 million. No Bitcoin ETF recorded an outflow. Total trading volume reached $1.57 billion, and total net assets at the end of the day stood at $78.26 billion.
The cumulative inflow into Bitcoin ETFs in the first two trading days of August has already exceeded the total net inflow for the entire month of July. If this trend continues, it could lead to a significant recovery in Bitcoin ETF inflows in August.
Ethereum ETFs also returned to positive territory, attracting $53.75 million across four products.
The leader was BlackRock's ETHA ETF with an inflow of $42.46 million. Fidelity's FETH ETF attracted $9.34 million, while Bitwise's ETHW ETF and Morgan Stanley's MSSE attracted $1.34 million and approximately $605,000, respectively. No outflows were recorded in this category. Total trading volume reached $387.95 million, and net assets at the end of the session were $10.32 billion.
Solana ETFs attracted $1 million, entirely driven by Morgan Stanley's staking-oriented MSOL fund. Trading volume was $31.08 million, and net assets at the end of the session stood at $875.26 million.
ETFs on $XRP and $HYPE recorded neither net issuance nor redemption. Assets of the $XRP funds at the end of the session were approximately $1 billion, while $HYPE products were $258.21 million.
BlackRock Takes Steps to Boost ETHA Share Price
According to a filing with regulators, BlackRock's iShares Ethereum Trust (ETHA) ETF is preparing for a reverse stock split at a ratio of "one for three."
The split will take effect on October 6. Every three shares of ETHA held on the record date of October 5 will be consolidated into one share. This change will result in an increase in the fund's net asset value per share, while each investor's total portfolio value remains unchanged.
This year, ETHA shares have traded around $14 following Ethereum's decline. The reverse split would raise the share price to approximately $42 at current prices.
Bloomberg Intelligence analyst Eric Balchunas noted that the higher share price could lower ETHA's effective trading costs by narrowing spreads. He estimates transaction costs could decrease from approximately seven basis points to around two.
This focus on execution costs highlights the pricing pressure ETFs are placing on traditional cryptocurrency trading platforms. For investors entering the market via brokerage accounts, lower spreads become another source of competition alongside asset custody, liquidity, and regulatory access.
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