Spot Ethereum ETFs Boost 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 last week. According to CoinShares, the newly launched funds attracted $2.2 billion last week.

Since then, the trading volume of Ethereum ETPs has also surged by 542%. However, the 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 observed with Bitcoin trust outflows during the January 2024 ETF launches.

Ethereum ETFs Drive Market Activity

According to the latest edition of the “Digital Asset Fund Flows Weekly Report,” Ethereum ETF launches drove the trading volume of digital asset investment products to $14.8 billion, the highest since May. Zooming out, the overall inflows, however, remained modest, with $245 million.

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

Bitcoin experienced strong inflows of $519 million over the past week as well, increasing its month-to-date inflows to $3.6 billion and its year-to-date inflows to a record $19 billion. CoinShares attributed the renewed investor confidence to the US electioneering remarks about Bitcoin potentially being a strategic reserve asset and the heightened 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 contrasts sharply with the weekly inflows into Bitcoin, indicating that while some investors are hedging their bets against potential downturns, the overall sentiment remains bullish.

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

Germany Tops Outflows Chart

Regionally, the US saw the highest inflows, totaling $272 million, followed by Switzerland at $40.6 million. Canada and Australia also recorded mild inflows of $2.5 million and $1.7 million respectively.

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