Ethereum remains one of the few mega-cap assets still holding May gains.
BlackRock has deployed $50 million into ETH in just 10 days, signaling a strategic move amid tightening supply.
Among mega-cap assets, Ethereum [ETH] stands out as one of the few still holding onto its May gains, currently trading over 3% above its early-May levels.
But this resilience isn’t accidental.
Instead, it appears to be part of a calculated allocation strategy by BlackRock. You see, over the past ten days alone, the firm has deployed $50 million into ETH.
For an institution built on performance, such capital deployment isn’t speculative.
Could this, then, be a signal that BlackRock is positioning ahead of a broader market repricing, with Ethereum’s once-distant $3k target now within striking distance?
Inside BlackRock’s strategic Ethereum bet
In less than a week, nearly $700 million slipped out of BlackRock’s Bitcoin [BTC] spot treasury (IBIT), with one day alone seeing almost half a billion in outflows.
But it’s not just the ETF, BlackRock also liquidated approximately 5,400 BTC, amounting to a substantial $56 billion sell-off on the 30th of May.
Consequently, this significant unwind contributed to heightened market volatility, triggering risk-off sentiment that pushed BTC to retrace back to $100k by the 5th of June.
Naturally, one would expect Ethereum to mirror this downturn, especially with millions wiped from derivatives.
However, ETH demonstrated relative resilience, limiting losses to 6.8% compared to BTC’s double-digit decline.
In fact, ETH settled into a tight trading range, indicating reduced volatility and more stable price dynamics relative to Bitcoin.
Source: TradingView (ETH/USDT)
As previously mentioned, this resilience isn’t a fluke. Instead, this stability aligns with strategic capital flows.
Beyond BlackRock’s direct accumulation, its Ethereum ETF (ETHA) recorded nearly $319 million in inflows over the past week, marking the first sustained weekly inflows since the November 2024 rally.
According to AMBCrypto, such consistent demand signals a deliberate strategic allocation. Hence, reinforcing BlackRock’s positioning in Ethereum as a part of a broader, data-driven investment thesis.
Does it know something the market doesn’t?
Given the scale of BlackRock’s investment, it’s a fair question to ask – Does the world’s largest asset manager see something the broader market is missing?
Ethereum’s on-chain and market structure data suggest so. Right now, ETH supply on cold wallets is at a 7-year low. At the same time, over 340,000 ETH are sitting in the staking queue, waiting to be locked up for yield.
Source: Coinglass
Put it all together, and it looks like BlackRock is betting on a structural supply squeeze.
With more ETH being locked for staking, long-term holds, or leveraged futures, the amount available for trading keeps shrinking, and that’s exactly where their thesis might be taking shape.
In turn, making the elusive $3k target look a lot closer, and turning Ethereum’s current consolidation into a strong setup for a potential breakout.
Next: Could Bitcoin’s bull run be far from over? – Here’s what the charts say
