Spot Ether ETF Hits $1.1B Volume, BTC Dominance Under Threat?

Kelvin Munene Murithi
July 24, 2024
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ETH Price Crash Under $3,000 Soon, Will Ethereum ETF Inflow Minimize Impact?

Highlights

  • Ethereum ETFs soar, trading $1.1B on day 1, signaling a bullish future for ETH post-ETF.
  • ETH ETF debut rivals Bitcoin, hinting at a new era of crypto diversification and growth.
  • Post-ETF launch, Ethereum eyes $4K with investor confidence peaking and volumes booming.

Spot Ether ETFs have had a strong start, reaching the $1 billion trading volume on the first day of their launch. This major achievement came shortly after the SEC gave its nod to several issuers’ S-1 registration filings indicating that there is high interest in the market and possible changes in the cryptocurrency investment market.

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Spot Ether ETF Hits $1.1B Volume

On 23rd July, the Ethereum ETFs went live, and within the first day, the total trading volume reached nearly $1.1 billion. Bloomberg analyst Eric Balchunas pointed out that the combined trading value of the new ETFs was 23% of what was traded in the spot Bitcoin ETFs on their first day.

Of these, BlackRock’s Ethereum ETF (ETHA) contributed to 25% of the volume registered by the spot Bitcoin ETF (IBIT).

James Seyffart, another market analyst gave an estimate that the net flow for the day could be between $125 million and $325 million depending with the number of pre-existing investors. The difference between Grayscale’s long-standing Ethereum Trust (ETHE) and the newly launched ETFs was $625 million which is expected to bring in more inflows.

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ETH Price Trend

The launch of these ETFs has given rise to different expectations about the price of Ethereum and its relationship with Bitcoin. Bitwise CIO Matt Hougan added that investors will probably also own both BTC and ETH as a hedge. Hougan recommended that the portfolio be split as 60% in Bitcoin ETP, 30% in Ethereum ETP and the remaining 10% in Crypto Equities ETP.

The same sentiments are echoed by other market analysts who believe that Ethereum will mimic the performance of Bitcoin after the launch of the ETF. Even though there was high trading activity, the price of Ethereum only slightly dropped by 1% on the first day of ETF trading. This pattern replicates the price action of Bitcoin in the period shortly after the launch of ETF where the prices of the digital asset only rose weeks after the initial trading began.

After the introduction of the Bitcoin ETF, the initial price movement was slow, but there was a rapid increase in the following weeks, which led to an all-time high. Similarly, Ethereum may also follow the same trend with August being the month of dominance for the cryptocurrency and its ETFs.

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Ethereum’s Potential for Growth Post-ETF Launch

This being the case, as spot Ether ETFs remain to deliver strong results, analysts are bullish on the asset’s future value. However, the price needs to break through the current resistance levels at around $3,730 for a price rally.

The price ratio of Ethereum to Bitcoin has also gone up to 0.05, from the pre-approval level of 0.045. This increase suggests that the ratio of Ethereum to Bitcoin is increasing which could be a signal of further outperformance of Ethereum.

Read Also: XRP News: Lawyer Seeks Ripple Lawsuit Drop Amid Kamala Harris’ Crypto Pivot

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.