US-based spot Bitcoin and Ether exchange-traded funds (ETFs) have just experienced their most robust week of trading volume yet, as reported by an ETF analyst. This significant milestone highlights a growing interest and engagement in these financial instruments, which are increasingly being recognized for their potential to provide exposure to the cryptocurrency market.
Ether ETFs Awaken After Months of Dormancy
According to Eric Balchunas, a respected ETF analyst, the Ether ETFs have been particularly noteworthy. He stated in a recent X post that it was the “Biggest week ever for them, thanks to Ether ETFs stepping up big.” This comes after a period where these funds appeared to be relatively inactive.
Record-Breaking Volumes for Ether ETFs
Balchunas elaborated further on the performance of Ether ETFs, noting that their weekly trading volume reached approximately $17 billion, shattering previous records. “Man, did it wake up in July,” he remarked, underscoring the sudden surge in activity. The renewed interest coincides with a remarkable week for the cryptocurrency market.
During this period, Bitcoin (BTC) achieved a new all-time high of $124,000 on Thursday, while Ether (ETH) nearly matched its previous peak from November 2021, reaching $4,784 — just 1.94% shy of the record, as per CoinMarketCap data.
Despite some subsequent retracements, with Bitcoin falling 5.52% to $117,659 and Ether dropping 6.20% to $4,486, there is a prevailing sentiment among market observers that the current cycle has more to offer.
Sharp Turn for Ether ETFs
Monday marked a significant day for spot Ether ETFs, which saw unprecedented levels of net inflows totaling $1.01 billion. Within the first two weeks of August, these funds have accumulated over $3 billion in net inflows, marking their second strongest monthly performance ever.
Balchunas described the recent activity as if Ether ETFs were “asleep” for the past 11 months, only to channel a year’s worth of activity into just six weeks.
Although there was considerable anticipation leading up to their July 2024 launch, initial demand for Ether ETFs was tepid, prompting speculation about Wall Street’s need for a clearer use case for the asset. In contrast, Bitcoin ETFs quickly reached impressive highs of $73,679 just two months after their January 2024 launch.
Comparisons with Bitcoin’s ETF-Driven Surge
Analysts are drawing parallels between Ether’s recent price movement and Bitcoin’s rally following its ETF launch. “This move is comparable to the BTC ETF launch, when Bitcoin continued to rally upward,” commented Michael van de Poppe, founder of MN Trading Capital. He added, “The ETFs have a massive impact and there’s a lot to come for Altcoins.”
However, caution is advised. Nansen analyst Jake Kennis, in remarks to Cointelegraph, suggested that while ETH is close to a new all-time high, reaching those levels might take weeks or even months.
For more information, you can read the full article on Cointelegraph: Bitcoin, Ether ETFs Log Biggest Volume Week Ever
