A record-breaking week for US-based spot Bitcoin and Ether exchange-traded funds (ETFs) has been driven by a dramatic surge in interest for Ether products, which had previously seen months of sluggish activity. According to ETF analyst Eric Balchunas, the combined funds just logged their strongest week of trading volume ever.
“Biggest week ever for them, thanks to Ether ETFs stepping up big,” Balchunas stated in an X post on Friday.
This wave of momentum occurred in the same week that the cryptocurrency market hit new milestones. Bitcoin (BTC) soared to a new all-time high of $124,000 on Thursday. On the same day, Ether (ETH) came within striking distance of its November 2021 peak of $4,878, reaching a high of $4,784—just 1.94% shy of a new record, according to CoinMarketCap data.
The Ether ETF “Awakening”
The newfound excitement around Ether ETFs marks a sharp turnaround. After their much-anticipated launch in July 2024, the funds were met with lackluster demand, leading to speculation that Wall Street had yet to find a clear use case for the asset.
Balchunas noted it was as if Ether ETFs were “asleep” for 11 months and “then crammed” an entire year’s worth of activity into just six weeks. The numbers support this observation.
“Ether ETFs’ weekly volume was about $17b, blowing away record, man did it wake up in July,” he added.
This includes a record-breaking Monday, where spot Ether ETFs saw their largest single day of net inflows, totaling $1.01 billion. Across the first two weeks of August alone, these funds have attracted over $3 billion in net inflows, marking their second-strongest monthly performance to date.
Market Volatility and Analyst Outlook
While the market reached euphoric highs, a slight correction has followed. Since Thursday, Bitcoin has pulled back 5.52% to trade at $117,659, while Ether has seen a 6.20% drop from its recent peak, now trading at $4,486.
Despite the short-term dip, some analysts believe this is just the beginning. Michael van de Poppe, founder of MN Trading Capital, remains bullish, stating, “There’s way more to come for this cycle.”
He drew a direct comparison to the rally that followed the launch of Bitcoin ETFs in January 2024. “This move is comparable to the BTC ETF launch, when Bitcoin continued to rally upward,” van de Poppe explained. “The ETFs have a massive impact and there’s a lot to come for Altcoins.”
However, other experts advise a more patient approach. Jake Kennis, an analyst at Nansen, commented that a new all-time high for Ether might still be weeks or even months away, despite it being only a few hundred dollars from its previous record. His analysis suggests that while the momentum is strong, investors should be prepared for a more gradual climb to new heights.
