BlackRock clients sold $53 million in Ethereum through the iShares Ethereum ETF this month, a sign that institutional sentiment has turned cautious as the second-largest crypto asset hit $1,300. The outflows come during a July that saw ETH drop to its lowest level in over a year, with prediction markets pricing a 0.2% probability — a YES on the contract — that the price would reach that mark.
The $53 million exit
The iShares Ethereum Trust, which launched in 2023, has been one of the more popular spot crypto ETFs. But this month, clients pulled $53 million from the fund. That's not a catastrophic number for a fund with billions in AUM, but it's the largest single-month outflow since February and suggests some large holders are reducing exposure. BlackRock hasn't commented on the move, and the firm typically doesn't disclose individual client redemptions.
ETH at $1,300 — and what the market thinks
Ethereum dipped to $1,300 in July, a level not seen since late 2024. The move has rattled some retail traders, but the prediction market data tells a different story. On Polymarket and similar platforms, a contract asking whether ETH will hit $1,300 in July resolved to YES with a 0.2% probability — meaning traders saw it as a long shot, not a likely scenario. That spread between what actually happened and what the market expected is worth watching. It suggests the sell-off caught many off guard.
Why the outflow matters
The $53 million outflow from BlackRock's ETF is relatively small compared to the overall size of the fund, but it's a directional signal. Institutional investors have been net buyers of crypto ETFs for most of 2026, so a month of net selling — especially in a flagship product like iShares — stands out. The timing isn't great for ETH either. The broader market has been under pressure from regulatory uncertainty and a general risk-off mood, and Ethereum's own fundamentals — high gas fees, lingering competition from Solana and others — haven't helped.
What happens next is unclear. The prediction market odds suggest traders don't expect another leg down to $1,300, but the outflow shows some clients aren't waiting to find out. If more large holders follow suit, the pressure on ETH could build. For now, the iShares ETF is still the largest spot Ethereum fund by assets, but this month's data is a reminder that even the biggest players can flip from buyers to sellers quickly.
