Ethereum ETF Trading Volume Hits $1B Mark, Undervalued?
Spot Ethereum ETFs have quickly made a mark in the trading world, surpassing $1 billion in trading volume within less than a full day of trading. This rapid success mirrors the initial trading performance of Bitcoin ETFs back in January. Despite this strong start, some analysts believe that the ETFs are still undervalued, hinting at the potential for further growth, possibly leading to a surge in Ethereum’s value.
In just 15 minutes of trading, these ETFs saw an impressive trading volume of $120 million. However, the price of Ethereum has not experienced the anticipated surge following the ETF launch. At the current moment, Ethereum is trading at $3,478.30, showing only a modest 1% increase over a 24-hour period. Similar to Bitcoin’s ETF debut, while the ETFs traded well, significant price spikes were not immediate. It took several weeks for Bitcoin to gain momentum and eventually reach an all-time high. If Ethereum follows a similar trajectory to Bitcoin, we might witness a period of dominance for Ether and its associated ETFs in the upcoming month of August.
Even before the launch of Ethereum ETFs, analysts were already optimistic about ETH’s prospects entering the fourth quarter of 2024. The robust trading activity on the first day of ETF trading further reinforces this positive outlook for the asset. Observing Ethereum’s price charts, there appears to be a resistance level that must be surpassed to trigger a potential price surge, akin to Bitcoin’s historical pattern. Once Ethereum breaches this critical level, particularly above $3,730, it could pave the way for a significant upward movement in Ether’s value.
Traders and investors are closely monitoring Ethereum’s performance, with many eyeing a potential climb to $4,000 post the ETH ETF launch. The heightened trading activity, with a more than 110% surge in volume just before the ETF’s introduction, underscores the growing interest in Ethereum. With trading volume already exceeding $1 billion on the first day, the outlook for Ethereum in the coming days appears promising.
According to predictions from the crypto-analytic research firm ASXN, spot Ethereum ETFs are expected to attract monthly inflows of $1.2 billion. This forecast is influenced by Grayscale’s recent fee adjustment, where the firm reduced its initial fee from 0.25% to 0.15%, making the product even more appealing to potential investors. Should bullish sentiment persist among investors during the initial ETF trading period, achieving substantial profits and reaching all-time highs in Ethereum’s value could become a reality.
