Analysts focused on ETFs have noted a significant uptick in trading volumes for US-based Spot Bitcoin and Ether Exchange-Traded Funds (ETFs) over the past week.
According to ETF analyst Eric Balchunas, it was their largest week ever, driven by robust demand for the Ether ETF. He shared this insight in a recent X post.
Ether ETF “Slept” for Nearly a Year, Says Balchunas
Balchunas commented that Ether ETFs experienced a weekly trading volume of around $17 billion, setting new records.
Additionally, Bitcoin (BTC) reached a notable peak of $124,000 on Thursday. During the same timeframe, Ether (ETH) made headway towards its previous high from November 2021, nearing $4,878, and concluding that day at $4,784, a rise of just under 1.94%.
Since then, Bitcoin has settled at $117,659, down 5.52% from its all-time high, while Ether is at $4,486, reduced by 6.20% from its peak earlier in the week.
In contrasting views, Michael van de Poppe, founder of MN Trading Capital, indicated that there’s “more to come in this cycle.”
Ether ETF Experiences Significant Turnaround
On Monday, the Spot Ether ETFs marked their highest net inflow day ever, with total fund flows reaching $1.01 billion. In the first half of August alone, they garnered over $3 billion in net inflows, making it the second-strongest monthly performance to date.
Balchunas remarked that it appears the Ether ETF had been “dormant” for the past 11 months but has since packed a year’s worth of trading action into just six weeks.
Despite anticipation leading up to its July 2024 launch, the Ether ETF initially fell short of expected demand, prompting debate about Wall Street’s understanding of its utility.
On a different note, the Bitcoin ETF achieved a record high of $73,679 only two months after its launch in January 2024.
Analysts are finding parallels between the recent price increase for Ether and the post-launch rallies of Bitcoin ETFs.
Van de Poppe mentioned that this trend is reminiscent of the market’s activity when the BTC ETF was introduced, emphasizing the significant influence of ETFs on market movements and the effect on altcoins.
Yet, some experts caution that it may require patience before Ether reaches an all-time high.
Nansen’s analyst Jake Kenneth pointed out that while ETH is now just a few hundred dollars shy of its record price, the journey to a new all-time high could take weeks or even months.
