Ethereum Spot ETFs Increase Trading Volumes to $14.8 Billion, Highest Since May

The debut of spot Ethereum ETFs in the United States resulted in some of the highest inflows since December 2020 over the past week. According to CoinShares, the newly launched funds attracted $2.2 billion last week.

Since then, the trading volume of Ethereum ETPs has also increased by 542%. However, inflows have been hampered by Grayscale’s existing $1.5 billion Ethereum trust, which resulted in ETH experiencing a net outflow of $285 million for the week.

This mirrors the situation seen with Bitcoin trust exits during the January 2024 ETF launches.

Ethereum ETFs drive market activity

According to the latest edition of the “Weekly Report of Digital Asset Fund Flows”, Ethereum ETF launches brought the trading volume of digital asset investment products to $14.8 billion, the highest since May As it narrowed, overall receipts, however, remained modest at $245 million.

The recent price rally has further increased total assets under management (AuM) to $99.1 billion, with year-to-date (YTD) inflows reaching a milestone of $20.5 billion.

Bitcoin also saw strong inflows of $519 million over the past week, pushing its monthly inflows to $3.6 billion and year-to-date inflows to a record $19 billion. CoinShares attributed renewed investor confidence to US election remarks about Bitcoin potentially as a strategic reserve asset and the increased likelihood of a Fed rate cut in September 2024.

During the same period, short Bitcoin investment products saw modest inflows of $0.3 million. This relatively minor increase is in stark contrast to Bitcoin’s weekly inflows, indicating that while some investors are hedging their bets against potential recessions, overall sentiment remains bullish.

Altcoins, such as Cardano, Litecoin, and XRP, recorded weekly inflows of $1.2 million, $0.6 million, and $0.5 million, respectively. Chainlink also recorded inflows of $0.3 million during the week. However, Solana recorded $2.7 million in outflows.

Germany tops the departures chart

Regionally, the US recorded the highest receipts with a total of $272 million, followed by Switzerland with $40.6 million. Canada and Australia also recorded light inflows of $2.5 million and $1.7 million respectively.

At the same time, Germany recorded the highest outflows at $59.6 million. Brazil, Hong Kong and Sweden followed suit with $5.6 million, $3.5 million and $2.6 million in weekly departures.

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