FameEX Hot Topics | Bitcoin and Ether ETFs Hit Record Week With $40B in Trading Volume

U.S.-based spot Bitcoin and Ethereum exchange-traded funds (ETFs) have just recorded their strongest week ever, with combined trading volumes surging to new records, according to ETF analyst Eric Balchunas. In a post on X, Balchunas described it as the “biggest week ever,” noting that Ethereum ETFs, in particular, had been the main driver behind the surge in activity. After months of muted interest, Ethereum ETFs have come to life in dramatic fashion, injecting renewed momentum into the digital asset markets.

Balchunas emphasized that Ethereum ETFs’ weekly trading volume hit around $17 billion, smashing their previous records. He compared the sudden burst of activity to a market that had been “asleep” for nearly 11 months, only to “cram” an entire year’s worth of demand into six weeks. This surge coincided with Bitcoin reaching a new all-time high of $124,000 on Thursday, while Ethereum rallied to $4,784, coming within 1.94% of its historic November 2021 peak of $4,878, according to CoinMarketCap.

The rally proved short-lived, as both assets faced notable corrections. Despite the pullback, market participants remain optimistic. MN Trading Capital founder Michael van de Poppe remarked that “there’s way more to come for this cycle,” suggesting that the bull run is far from over. This optimism is fueled by record-breaking inflows into Ethereum ETFs, which on Monday alone saw $1.01 billion in net inflows — the largest single-day total since their launch. Across the first half of August, Ethereum ETFs have already attracted more than $3 billion in inflows, making it their second-strongest monthly performance on record.

The resurgence of Ethereum ETFs has shifted perceptions on Wall Street. Initially, after their July 2024 debut, the funds experienced weaker-than-expected demand, raising doubts about their broader utility. However, with surging inflows and trading volumes, investors are now drawing parallels to Bitcoin ETFs, which themselves drove significant market rallies after launching in January 2024. Bitcoin ETFs quickly reached highs of $73,679 within two months of their debut, offering a precedent that some analysts believe Ethereum could replicate.

Analysts are divided on the short-term outlook, though most agree the long-term trajectory remains bullish. Van de Poppe argues that ETFs have a “massive impact” not only on Bitcoin and Ethereum but also on altcoins, which could benefit in a spillover effect. Still, others, such as Nansen analyst Jake Kennis, caution that while Ethereum is just a few hundred dollars below its all-time high, it may take weeks or even months before a decisive breakout occurs. This mix of enthusiasm and caution underscores the delicate balance in the crypto markets as institutional adoption accelerates.

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