The world of cryptocurrency witnessed an extraordinary event as Bitcoin ETFs and Ether ETFs chalked up their most significant trading volume ever, reaching a colossal $40 billion. This remarkable feat marks a pivotal moment for these exchange-traded funds, especially with the spotlight on Ether ETFs making a substantial impact.
The Rise of Bitcoin ETFs and Ether ETFs
According to ETF analyst Eric Balchunas, this week was the “biggest ever” for Bitcoin ETFs and Ether ETFs, thanks primarily to the impressive performance of Ether ETFs. Balchunas remarked on an X post, “Biggest week ever for them, thanks to Ether ETFs stepping up big.” The enthusiasm around Ether ETFs was palpable as they seemed to have been dormant for almost a year.
Ether ETFs recorded a staggering weekly volume of about $17 billion, which shattered previous records. This surge in activity was significant, especially considering that Ether had been relatively quiet over the past 11 months. The awakening of Ether ETFs coincided with Bitcoin’s all-time high of $124,000 and Ether’s close approach to its previous peak of $4,878, reaching $4,784, a mere 1.94% difference.
Bitcoin and Ether Price Movements
Despite these impressive highs, the prices faced some corrections. Bitcoin retreated by 5.52% from its all-time high, trading at $117,659, while Ether saw a 6.20% drop, trading at $4,486. However, Michael van de Poppe, the founder of MN Trading Capital, remains optimistic, suggesting that “there’s way more to come for this cycle.”
Ether ETFs Surge Ahead
The Ether ETFs recorded an unprecedented day of net inflows, totaling $1.01 billion on a Monday. Over the first two weeks of August, spot Ether ETFs amassed more than $3 billion in net inflows, marking their second-strongest monthly performance to date. Balchunas noted that it seemed as if Ether ETFs had been “asleep” and then packed a year’s worth of activity into just six weeks.
Initially, Ether ETFs experienced a lukewarm response upon their launch in July 2024, as Wall Street seemed uncertain about their utility. Meanwhile, Bitcoin ETFs reached new heights of $73,679 just two months after their January 2024 launch.
Comparisons and Future Expectations
Analysts are drawing parallels between Ether’s recent price surge and Bitcoin’s post-ETF rally. Van de Poppe commented, “This move is comparable to the BTC ETF launch when Bitcoin continued to rally upward.” He added that the ETFs have a massive impact and there’s much more to come for altcoins.
However, not all analysts are as bullish. Nansen analyst Jake Kennis indicated that while Ether is nearing a new all-time high, it might still take weeks or months to achieve this milestone.
The excitement around Bitcoin ETFs and Ether ETFs underscores the growing confidence in these financial instruments and their potential to influence the broader crypto market.
