Ethereum Spot ETFs See Trading Volume Rise to $14.8 Billion, Highest Since May

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

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

This mirrors the situation seen with bitcoin's confidence outflows during the January 2024 ETF launches.

ethereum ETFs boost market activity

According to the latest edition of “Digital Asset Fund Flows Weekly Reportethereum ETF launches boosted trading volume for digital asset investment products to $14.8 billion, the highest level since May. However, looking more at the topic, overall inflows remained modest at $245 million.

The recent price surge has further boosted total assets under management (AuM) to $99.1 billion, and year-to-date (YTD) inflows have reached a milestone of $20.5 billion.

bitcoin also saw strong inflows of $519 million over the past week, boosting 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 U.S. election comments about bitcoin being a strategic reserve asset and the increased likelihood of a Federal Reserve rate cut in September 2024.

Over the same period, bitcoin short-sell 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 declines, the overall sentiment remains bullish.

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

Germany leads the table for capital outflows

Regionally, the United States recorded the largest inflows, totaling $272 million, followed by Switzerland with $40.6 million. Canada and Australia also recorded moderate inflows of $2.5 million and $1.7 million, respectively.

At the same time, Germany recorded 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.

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