Ethereum

United

Bitcoin ETF

<p>The United States financial markets welcomed the launch of several spot Ethereum ETFs on July 23, 2024, marking a new chapter for crypto investment products.</p>
<p>According to data, the first day of trading ended with a record 1.1 billion volume. This solid debut points to continued interest and confidence from investors as well as the increased value of Ethereum.</p>
<p>The trading activity of these Ethereum-based ETFs indicates a possible change in the cryptocurrency landscape that has been predominantly Bitcoin-oriented.</p>
<p>According to analyst Eric Balchunas, Ethereum ETFs accounted for 23% of trading volume on the day of debut compared to the first Bitcoin ETFs. This outcome may indicate an evolution in the investor’s choice in the diversification of crypto assets.</p>
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   <p lang="en" dir="ltr">DAY ONE in the books for Eth ETFs who did $1b in total volume, which is 23% of what the spot bitcoin ETFs on their first Day and <a href="https://twitter.com/search?q=%24ETHA&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ETHA</a> did 25% of <a href="https://twitter.com/search?q=%24IBIT&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$IBIT</a>'s volume. The gap between <a href="https://twitter.com/search?q=%24ETHE&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ETHE</a> and The Newborn Eight is a healthy +$625m (a sizable chunk of which *should* convert to inflow <a href="https://t.co/jaP4dKLrOs" rel="noopener noreferrer nofollow">pic.twitter.com/jaP4dKLrOs</a></p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1815848912185377005?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 23, 2024</a>
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<h2 class="wp-block-heading" id="h-detailed-performance-and-market-reactions"><strong>Detailed Performance and Market Reactions</strong></h2>
<p>Notably, BlackRock’s Ethereum ETF (ETHA) recorded significant inflows and stood out as one of the dominant products in the market. On the day of the launch, ETHA contributed 25% of the total trading volume of the BTC ETF IBIT that launched earlier.</p>
<p><strong>Ethereum</strong> has since experienced a slight price drop trading at $3,466, a 1.54% decline. However, the 24-hour price chart shows support around the $3400 zone with indications of a rebound above the $4K resistance level.</p>
<p>The market sentiment was largely bullish, although some investors withdrew from products such as Grayscale’s Ethereum Trust (ETHE) which converted to an<strong> ETF.</strong> Such shifts lead to short-term liquidity changes as investors rebalance their portfolios. James Seyffart estimated the daily net flow was to be between $125 million and $325 million.&nbsp;</p>
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   <p lang="en" dir="ltr">First day of the ETHness stakes done. The group's volume was just shy of $1.1 billion. My *prediction* on flows for the day is anywhere from $125 million to $325 million but will depend on how many investors these firms had lined up. We'll know some official flows in a few hours <a href="https://t.co/p6Wjty8VyY" rel="noopener noreferrer nofollow">https://t.co/p6Wjty8VyY</a> <a href="https://t.co/1gYYrU1CW1" rel="noopener noreferrer nofollow">pic.twitter.com/1gYYrU1CW1</a></p>— James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1815849216012333400?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 23, 2024</a>
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<h2 class="wp-block-heading" id="h-ethereum-etf-competitive-edge-against-bitcoin"><strong>Ethereum ETF Competitive Edge Against Bitcoin</strong></h2>
<p>The launch has opened up debates on whether Ethereum is set to overtake Bitcoin in the crypto market. The ratio of Ethereum to <a href="https://www.thecoinrepublic.com/2024/07/24/bitcoin-price-to-hit-105k-by-2025-if-trump-wins-analyst-predicts/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin</a> has risen from 0.045 to 0.05 showing the increasing trend of the investors for Ethereum as an investment option.</p>
<p>The transformation is backed by the opinions of industry leaders including Matt Hougan, the Chief Investment Officer at Bitwise. He noted that a balanced portfolio consists of BTC and Ether, pointing to the acceptance of Ethereum’s role alongside Bitcoin. Matt Hougan also expressed his positive surprise during a recent interview, stating, “It’s exceeded my expectations.”</p>
<p>Analysts from Wintermute also provided a cautious forecast, estimating that Ethereum ETF might attract between $3.2B and $4B in the coming year. This was slightly lower than their earlier optimistic projections.</p>
<p>Additionally, Christopher, head of research at Franklin Templeton, highlighted the accelerated adoption rate of Ether ETFs compared to Bitcoin ETFs. He attributed this to investors’ prior experience with Bitcoin ETFs, which may ease their transition into newer crypto ETFs.</p>
<p>“People have already done some of their homework. Many have already dipped their toes in, so this would be a way to diversify into this new asset class,” Jensen noted in another interview.&nbsp;</p>
<p>The post <a href="https://www.thecoinrepublic.com/2024/07/24/ethereum-etfs-capture-23-of-bitcoin-etf-trading-volume-on-debut/" rel="noopener noreferrer nofollow">Ethereum ETFs Capture 23% of Bitcoin ETF Trading Volume on Debut</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.</p>

Ethereum ETFs Capture 23% of Bitcoin ETF Trading Volume on Debut

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