FameEX Hot Topics | $40B Volume Marks Biggest Week Ever for Bitcoin and Ether ETFs

U.S.-based spot Bitcoin and Ethereum exchange-traded funds (ETFs) have reached a historic milestone, posting their strongest week on record in terms of trading volume. According to ETF analyst Eric Balchunas, the past week marked the “biggest week ever” for these products, largely thanks to a surge of activity in Ethereum ETFs. After nearly a year of muted performance, Ethereum-focused funds appear to have suddenly awakened, driving significant momentum into the broader digital asset market and renewing investor confidence.

Balchunas highlighted that Ethereum ETFs posted a staggering $17 billion in weekly trading volume, shattering previous records. He likened the surge to a market that had been dormant for 11 months, only to compress a year’s worth of demand into a six-week window. This spike in ETF activity coincided with major moves in the crypto market itself. Bitcoin climbed to a new all-time high of $124,000 on Thursday, while Ethereum surged to $4,784, coming within 1.94% of its November 2021 peak of $4,878, according to data from CoinMarketCap.

However, the momentum was quickly tempered by market corrections. Despite these pullbacks, optimism remains strong among analysts and traders. Michael van de Poppe, founder of MN Trading Capital, commented that “there’s way more to come for this cycle,” pointing to the impressive net inflows into Ethereum ETFs. On Monday alone, Ether ETFs recorded $1.01 billion in inflows — the largest single-day total since their inception. Cumulatively, in just the first two weeks of August, Ethereum ETFs have attracted more than $3 billion, making it their second-best monthly performance to date.

The rebound of Ethereum ETFs has also shifted institutional sentiment. When the funds launched in July 2024, demand was initially underwhelming, raising doubts about their long-term relevance. Now, with inflows and trading volume accelerating, analysts are comparing Ethereum’s current rally to the explosive post-launch performance of Bitcoin ETFs, which hit $73,679 just two months after their debut in January 2024. The parallels suggest Ethereum could follow a similar path, with ETFs acting as a powerful catalyst for price appreciation.

Looking forward, the outlook remains divided between cautious patience and bullish conviction. Van de Poppe sees ETFs as having a “massive impact,” not just on Bitcoin and Ethereum but also on altcoins, which may benefit from increased liquidity and investor confidence. Conversely, Nansen analyst Jake Kennis advises caution, noting that although Ethereum sits only a few hundred dollars below its all-time high, achieving a decisive breakout could take weeks or months. This balance of optimism and restraint underscores the complexity of today’s crypto markets as institutional adoption continues to expand.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.