- This isn’t the first time BlackRock did something similar, as last month, the company bought more than $500 million in ETH
- Data shows that multiple institutions are chasing Ethereum, including Fidelity and Grayscale
- Following the news, ETH rose by roughly 1.75%
BlackRock, one of the world’s largest asset managers, just purchased over $300 million worth of Ethereum (ETH), according to the Arkham Intelligence data.
This isn’t the first time BlackRock did something similar, as last month, the company bought more than $500 million in ETH, surpassing its BTC inflows by $50 million.
The investment company is going big lately on Ethereum. For instance, reports say that on July 16, BlackRock bought more Ethereum in one day than ever before, about $499.2 million worth. This sizable purchase brought the company’s total ETH holdings to over $7 billion, which is 2 million ETH, give or take.
Also, BlackRock is among the first to seek permission for ETH staking within its iShares Ethereum ETF, making Ethereum a yield-generating investment.
However, BlackRock isn’t the only one interested in ETH. Data also shows that multiple institutions are chasing Ethereum, including Fidelity and Grayscale, suggesting that more and more investors are looking favorably towards ETH.
Interestingly, ten(ish) days ago, when both Bitcoin and Ethereum dropped by 5%, BlackRock’s ETFs collectively purchased over $1 billion, demonstrating institutional confidence in Ethereum’s fundamentals.
Impact on Ethereum’s price
As one might expect, the news of a $300 million Ethereum purchase by the world’s largest asset triggered price action, albeit a small one, at least for now. Regardless, a purchase this large could cause everyday people and traders to start buying too, which might lead to a short-term price increase.
Following the news, ETH rose by roughly 1.75% before dipping down by about 0.86%. It is currently around $4,520 after a recent bounce from approximately $4,320. Looking closely at TradingView’s 1-hour chart, we can see a strong sell-off from ~$4,760, where ETH made a series of lower lows until $4,320.
The last few candles show higher lows and higher highs, suggesting a short-term recovery attempt.
Still, institutional news and ETF flows could push Ethereum toward bigger increases in the next quarter. Generally speaking, the macro trend is bullish given the Ethereum ETF approvals and institutional inflows.
All in all, BlackRock’s $300 million Ethereum buy is institutionally bullish and could help ETH gain momentum both short and medium-term.
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