BlackRock ether ETF purchases slow one-third amid ETH price rally

BlackRock's purchases via its Ethereum exchange-traded funds have decelerated, even as ETH's price rises.

Here is what took place.

On Tuesday, Cointelegraph reported that BlackRock's two Ethereum ETFs — the spot iShares Ethereum Trust (ETHA) and the staking fund ETHB — had acquired $1.01 billion of ETH over the preceding 20 trading sessions. While substantial, that figure is significantly below the amount circulating a week earlier.

Arkham data from 17 September showed ETHA had bought roughly $1.27 billion of ETH over the prior 20 days and ETHB about $296.5 million, with ETHB recording no single-day net outflows during that period. Combined, the total was approximately $1.57 billion. TechFlow

Farside Investors' daily flow data confirms the same trend. Over the 20 sessions ending 15 September (starting 18 August), the two funds attracted about $1.63 billion. Across the latest 20 sessions (24 August to 21 September), they attracted roughly $1.13 billion — $897 million for ETHA and $234 million for ETHB. The lower Cointelegraph figure likely stems from different data cutoffs, but every metric indicates the buying pace fell by roughly a third over the week.

Splitting the latest window in half reveals the slowdown more clearly. The first ten sessions (24 August to 4 September) generated about $863 million, while the second ten (8 to 21 September) generated only $269 million.

Why this is significant.

Part of the decline is simple arithmetic. A 20-day total is a rolling metric, so each new session replaces the oldest one. Late August was one of the strongest stretches for these funds this year. As those strong sessions drop out and quieter September sessions enter, the headline figure falls even while daily flows stay positive.

September was also more than just quieter. ETHA posted outflows of $98.0 million on 15 September, $110.0 million on 16 September and $42.9 million on 17 September, and ETHB lost $19.8 million on 16 September. Together, the two funds shed about $258 million over those three sessions. ETHB's outflow on 16 September also ended its clean run, so the previous week's point about that fund never recording an outflow no longer stands. Farside Investors

It is also helpful to clarify who is buying. The ETH is owned by the funds' shareholders, not BlackRock's corporate treasury, so the growing holdings mainly reflect client demand. Slower inflows mean BlackRock's clients are adding less, not that BlackRock has changed its view. KuCoin

Flows versus price.

The headline misses that ETH rose while buying slowed. Over the month to 22 September, ETH gained about 9%, trading between roughly $2,358 and $2,805. Early Tuesday, one ETH was priced at about $2,746. The two BlackRock funds returned to inflows on Friday and Monday, adding about $237 million over those sessions as the rally picked up. Investing.comFortune

That points to demand beyond the ETFs. Part of the latest move also looks mechanical. Ethereum liquidations reached $180.31 million in the latest wave, and about 84% of liquidations in the most recent hour came from short positions. When traders betting on a fall are forced to buy back, the price can rise without any new long-term buyer arriving. Yahoo Finance

ETF inflows are one source of demand, not the whole market. Price can rise while flows weaken, just as it can fall while flows are strong.

What might change the interpretation.

The September softness would look more like a pause than a shift if ETHA returns to steady inflows while ETH holds its gains. If the rally continues while flows stay flat or negative, the move would rest more on leverage and short covering, which tends to be less durable than real-money buying.

It is also worth tracking the two funds together rather than separately. Some money has moved from ETHA into ETHB to earn staking yield, so part of ETHB's inflow comes from BlackRock's own spot fund rather than from new investors. OKX

What to watch next.

The 20-day total will probably keep falling for several more sessions, almost regardless of daily flows. The five sessions from 24 to 28 August added about $644 million, and they drop out of the window one at a time through 28 September. To hold the rolling total near $1.13 billion, the two funds would need to average about $130 million a day over that stretch. A lower headline figure next week would therefore not, by itself, show new weakness.

Daily flows are the better guide. Consistent inflows while ETH holds its gains would support the demand story. Outflow days during a rising price would suggest the rally is getting ahead of real-money buying. Until then, watch the daily Farside figures alongside the price before treating ETF buying as a bullish signal.