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BlackRock’s iShares Ethereum Trust, also known as ETHA, has become the first U.S. Ethereum exchange-traded fund (ETF) to reach $1 billion in net inflows, data from Farside Investors shows.

This is a significant milestone, though the fund lags the initial performance of BlackRock’s iShares Bitcoin Trust (IBIT), which surpassed $1 billion in just four days. Despite the slower pace compared to Bitcoin ETFs, demand for Ethereum-based funds like ETHA is growing, though not at the same explosive pace as their Bitcoin counterparts.

The $1 billion milestone was reached after ETHA raked in $26.8 million on August 20. Data from Farside shows that only BlackRock’s ETF and Bitwise’s Ethereum fund (ETHW) made gains on Tuesday, while other competing ETFs, with the exception of Grayscale’s ETHE, reported zero flows.

Investors have pulled about $2.5 billion out of Grayscale’s ETHE since it converted into an ETF. Like its Bitcoin counterpart, the fund charges relatively high fees compared to other investment options.

While ETHE has been experiencing continued negative capital flows since its debut, outflows appear to have slowed down recently.

Withdrawals peaked at $484 million on the fund’s first day of trading, followed at a similar pace through the first week but slowed earlier this month. The lowest outflow was recorded last Wednesday at $16.9 million.

BlackRock’s Ethereum and Bitcoin ETFs recently surpassed Grayscale’s in assets under management for the first time, with a marginal lead in their combined holdings.

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