Ethereum
Ethereum ETFs Boost Crypto Fund Trading Volume as Bitcoin Retains ‘Healthy’ Interest
Cryptocurrency investment funds saw a surge in trading volume last week thanks to the launch of the spot Ethereum exchange-traded funds (ETFs) in the United States, although asset inflows were down sharply from the previous week due to assets leaving at least one of the funds.
According to a CoinShares Report According to data released Monday, the combined trading volume of these funds reached $14.8 billion, the “highest levels since May” thanks to Ethereum fund launches. In addition, derivatives products in this category also reached a total of $99.1 billion in assets under management, while year-to-date inflows amount to $20.5 billion.
Digging deeper into the numbers, entirely new Ethereum ETFs generated $2.2 billion in assets, which is “one of the largest inflows since December 2020,” CoinShares said. The report also mentions that trading volume for exchange-traded products tracking Ethereum increased by 542% following the launch of spot Ethereum ETFs.
However, Grayscale’s existing Ethereum fund, which converted to a spot ETF last week, saw substantial outflows, as traders may have opted for other funds amid higher fees than all other Ethereum ETFs. CoinShares also highlighted Grayscale’s new Ethereum Mini Trust ETF, whose launch benefited approximately $1 billion in assets from its Ethereum Trust ETF.
The report also tracks the United States Securities and Exchange Commission approval The New York Stock Exchange (NYSE) has asked Arca to list Grayscale’s Bitcoin Mini Trust. Like the Ethereum Mini Trust, the new offering is a low-fee product designed to compete with more competitively priced alternatives offered by other asset managers.
Bitcoin ETFs, on the other hand, saw what CoinShares described as “healthy” asset inflows worth $519 million during the same week, despite down $1.27 billion the previous week. Still, that sum brought monthly inflows to $3.6 billion and year-to-date inflows to a record $19 billion.
Continued interest in spot Bitcoin ETFs last week came amid rumored announcements of future plans for a strategic national Bitcoin reserve, which former U.S. President Donald Trump revealed Saturday at the Bitcoin 2024 conference. Republican Senator Cynthia Lummis also detailed a similar plan, although it is unclear if it is the same one.
“We believe that the US election commentary on Bitcoin as a potential strategic reserve asset and the increased chances of a Fed rate cut in September 2024 are the most likely factors. [reasons] for renewed investor confidence,” CoinShares wrote.