BlackRock Purchases $500M in Ethereum in 10-Day Buying Spree

BlackRock Inc., the world’s largest asset manager, purchased more than $500 million worth of Ethereum in 10 days through its iShares Ethereum Trust ETF, according to blockchain analytics firm Arkham Intelligence.

The purchases, totaling more than $492 million over nine consecutive days of inflows, represent a significant shift in institutional cryptocurrency strategy. Data released June 7 shows consistent transactions from Coinbase Prime hot wallets to BlackRock’s Ethereum addresses.

The buying spree follows BlackRock’s decision to sell $561 million in Bitcoin earlier this month. The reallocation signals growing institutional interest in Ethereum, the second-largest cryptocurrency by market capitalization.

On June 6 alone, BlackRock purchased 19,077 ETH valued at approximately $52.4 million, Arkham data shows. Ethereum traded at about $2,626 in early June, representing a 37% price increase over the past month.

Ethereum’s appeal to institutional investors stems from its utility as a platform for decentralized applications and smart contracts — self-executing agreements written in code. The blockchain network, launched in 2015, has become central to decentralized finance and non-fungible token markets.

Recent technological upgrades have enhanced Ethereum’s institutional attractiveness. The network completed its transition to a Proof of Stake consensus mechanism in 2022 and has adopted Layer 2 scaling solutions like Arbitrum and Optimism to reduce transaction costs and increase processing speed.

The iShares Ethereum Trust ETF, launched by BlackRock in 2024, tracks Ethereum’s price minus fees and expenses. Unlike traditional ETFs, it operates outside Investment Company Act of 1940 requirements.

Despite the institutional capital influx, Ethereum’s price has not seen immediate dramatic gains. Analysts suggest institutions view ETH as a long-term infrastructure asset rather than a speculative investment.

The move comes as Ethereum faces competition from rival blockchains like Solana but benefits from regulatory clarity following U.S. approval of Ethereum ETFs. More than 50 non-cryptocurrency enterprises, including PayPal Holdings Inc. and Deutsche Bank AG, have adopted Ethereum-based solutions.

BlackRock’s portfolio shift could signal broader institutional acceptance of digital assets in traditional finance, potentially influencing cryptocurrency market trends and investor behavior.