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- Spot Ethereum ETFs had a massive first day, hitting over $1 billion in trading volume but Ethereum’s price hasn’t surged yet.
- Analysts are optimistic, predicting that Ethereum could see a big jump in August if it follows Bitcoin’s pattern from earlier this year.
Spot Ethereum ETFs hit the ground running, blowing past $1 billion in trading volume within a single day. Just like Bitcoin ETFs back in January, Ethereum’s new ETFs have had an explosive start.
In the first 15 minutes of trading, the ETFs saw an incredible $120 million in volume. Yet, Ether’s price hasn’t skyrocketed as many expected. At the moment, ETH is trading at $3,478.30, a modest 1% increase in 24 hours.
Bitcoin had a similar start, with good ETF trading but no immediate price surge. It took Bitcoin a few weeks to pick up and over a month to hit an all-time high. If Ethereum follows Bitcoin’s pattern, we could see a big jump in August.
Before the launch of Ethereum ETFs, analysts were already optimistic about it. At least for Q4 2024. The first-day trading activity only added to their excitement.
Analysts believe that ETH needs to break a resistance level around $3,730 to see a price boom that breaks all-time high. Andrew Kang warned us of a possible dip after the launch as Bitcoin might perform better in the short term.
Bloomberg’s Eric Balchunas speculated that if BlackRock’s Ethereum ETF hits over $200 million in trading volume, it could exceed expectations and capture more than 20% of Bitcoin’s inflows. Nate Geraci said:
“That said, even if spot ether ETFs only pull-in 20-25% of the assets of spot bitcoin ETFs, that would be a highly successful result and one that I think is absolutely achievable.”
Some analysts expected a brief decline in Ethereum prices post-ETF launch, similar to Bitcoin’s behavior earlier this year. But they believe it will rebound above the $3,730 level.
Others suggest that the ETFs could trigger a significant bull run for Ethereum, predicting inflows of around $15 billion within the first 18 months of trading.
The launch of Ethereum ETFs has also led to increased volatility in the market. Post-launch, ETH options volatility is expected to rise from 60% to 80%.
This means that traders have been getting ready for potential price swings, which could lead to a bullish reversal in the long term. At press time, Ether was worth $3,643 with an increase of only 0.5% in the past twenty-four hours.
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Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Jai Hamid
Jai Hamid is a finance writer with six years of experience covering crypto, stock markets, technology, the global economy, and the geopolitical events that affect markets. She has worked with blockchain-focused publications including AMB Crypto, Coin Edition, and CryptoTale, covering market analyses, major companies, regulation, and macroeconomic trends. She attended London School of Journalism and has appeared thrice on one of Africa’s top TV networks to share crypto market insights.
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