Ethereum
Analysts Expect Bitcoin ETF Volume to Hit 20% on First Day
Less than three months ago it seemed unlikely, but today it is becoming reality. The very first spot Ethereum Exchange Traded Funds Exchange traded funds (ETFs) began trading in the United States on Tuesday morning at 9:30 AM EST. The group of newly launched Ethereum-based ETFs posted impressive numbers, with a total trading volume of $361 million in the first 90 minutes. According to one prominent analyst, Ethereum ETF trading volume could account for a significant portion of Bitcoin’s first-day ETF volume.
Ethereum Records 50% of Bitcoin’s Initial Trading Volume
The recently launched Ethereum ETFs have posted impressive numbers, with a total trading volume of $112 million in the first 15 minutes. This volume is remarkable, representing more than half of what the Bitcoin ETFs achieved on their first day, but it exceeds many expectations for a typical ETF launch. In the first 90 minutes, the ETH ETF saw a trading volume of $361 million.
Eric, ETF Analyst Underlines This volume is substantial compared to other ETF launches, but still lags behind the explosive debut of Bitcoin ETFs. Grayscale, in particular, outperformed in early trading, indicating strong investor interest in the ETH ETF market.
Eric also pointed out that this impressive number puts them around 15th in terms of overall ETF volume, tied with well-known funds like $TLT and $EEM, putting them in the top 1% of ETFs traded. Unlike typical ETF launches, which rarely see volumes exceed $1 million on their first day, every ETF in this group has significantly outperformed this benchmark.
Ethereum Price Faces Growing Bearish Threat
After the launch of Ethereum spot ETFs, there could be a temporary setback as capital outflows from the Grayscale Ether Trust could dampen market sentiment. Similar to the experience with Bitcoin ETFs, investors could shift their funds to options with lower fees. As a result, the ETH Price could be heading for an accident.
The Grayscale Ethereum Trust ETF (ETHE) evolved from the original Grayscale Ethereum Trust and currently manages approximately $9 billion in ether. Another challenge that could cause demand for spot Ethereum ETFs to plummet is the lack of staking rewards. Holding ether directly offers the significant benefit of staking, which allows investors to earn rewards, adding to its appeal.
ETFs offer institutional investors a regulated and convenient way to access Ethereum, but retail investors and those seeking higher yields can choose to hold Ethereum directly to capitalize on staking rewards.
Investors interested in staking are typically more familiar with cryptocurrencies and more comfortable managing their own custody. For those who prefer not to directly manage Ethereum, these ETFs are an ideal way to benefit from the asset’s appreciation, even in the absence of staking returns.
Our Bitcoin Cash ETFslaunched in the United States in January, have collectively reached a market capitalization of nearly $60 billion and a cumulative trading volume of $330 billion.
According to Nate Geraci, president of The ETF Store, the Ethereum spot market is currently less than a third of the size of the Bitcoin market. Therefore, demand will be a third of Bitcoin demand.
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