- Ethereum continues to be one of the few large-cap assets maintaining an upward trend since May.
- BlackRock has injected $50 million into ETH in just 10 days, showing a strategic move amid a tightening supply landscape.
Ethereum – Steady Amid Major Price Waves
Among large-cap assets, Ethereum (ETH) stands out by maintaining growth since early May, currently trading over 3% higher compared to early May.
This price momentum is not coincidental.
This stability is the result of a proactive capital allocation strategy from BlackRock. In just the past 10 days, the firm has boldly invested $50 million into ETH.
As a global investment organization, BlackRock's capital injection is considered strategic, not merely short-term speculation.
Is this a signal that BlackRock is anticipating a broader market repricing, as the $3,000 target for Ethereum draws closer?
BlackRock's Ethereum Investment Strategy
In just one week, nearly $700 million was withdrawn from BlackRock's Bitcoin ETF (IBIT), with some days seeing net outflows of nearly half a billion dollars.
Beyond ETFs, BlackRock also sold around 5,400 BTC, with a total value of approximately $56 billion on May 30.
This large-scale sell-off contributed to increased market volatility, triggered risk-averse sentiment, and pushed BTC back to the $100,000 mark on June 5.
Typically, Ethereum would also face similar selling pressure, especially when the derivatives market witnesses large liquidations.
However, ETH demonstrated good resilience, dropping only 6.8% while BTC plummeted in double digits.
Notably, ETH has stabilized in a narrow trading range, showing decreased volatility and more stability compared to Bitcoin.
Source: TradingView (ETH/USDT)
This stability reflects a strategic capital flow trend rather than randomness.
Beyond direct purchases, BlackRock's Ethereum ETF (ETHA) recorded nearly $319 million in inflows over the past week – the first consecutive capital inflow since the significant price surge in November 2024.
Statistics from TinTucBitcoin suggest that this capital flow demonstrates a long-term capital allocation strategy, reinforcing BlackRock's position in Ethereum based on market data and sustainable investment arguments.
What Does BlackRock See That the Market Hasn't Recognized?
With the current scale of investment, observers are asking: does BlackRock see opportunities that the broader market is missing?
On-chain data and ETH market structure currently show that ETH in cold wallets has reached its lowest level in 7 years. Meanwhile, over 340,000 ETH are currently in the staking queue to be locked for interest.
Circulating supply has significantly decreased, while more ETH is being held long-term or locked in staking. In the derivatives market, the open interest for ETH in May surged to over $35 billion – exceeding the peak of the previous price cycle.
Source: Coinglass
Synthesizing these factors, it appears BlackRock is betting on an ETH supply scarcity surge.
As more ETH is locked for staking, held long-term, or traded in derivatives, the circulating ETH will continue to decrease, making BlackRock's investment thesis increasingly clear.
This brings the $3,000 target closer, with the current accumulation phase potentially serving as a launchpad for Ethereum's next strong breakout.
