- Growing expectations for spot approval have led to an all-time high in daily trading volume for Ethereum futures ETFs.
- Tuesday’s trading volume for Ethereum futures ETFs was $47.75 million, which is 40% more than the $34.18 million top reached on March 5.
In anticipation of spot approvals from the U.S. Securities and Exchange Commission, daily trading volume for Ethereum ETH -0.089% futures exchange-traded funds reached a new all-time high yesterday.
Building on their $23.67 million rise on Monday, the Ethereum futures ETFs recorded $47.75 million in trading volume on Tuesday, 40% more than the previous $34.18 million top achieved on March 5 as ether was reaching the $4,000 mark.
ProShares’ Ether Strategy ETF (EETH), which accounted for $43.14 million or 90% of yesterday’s trading activity, leads the category. Bitwise’s Ethereum Strategy ETF (AETH) generated $2.01 million in volume, while VanEck’s Ethereum Strategy ETF (EFUT) came in second.
The trading volume for Ethereum futures ETFs, which debuted in October 2023, is far less than that of the spot Bitcoin ETFs, which debuted in January and achieved a total trading volume of $2.16 billion on Tuesday, lead by BlackRock’s IBIT on $1.12 billion. This is true even with the new daily record.
But since March 5, when bitcoin first broke over its previous cycle peak of about $69,000, the daily trading volume of the spot Bitcoin ETF has drastically decreased, having reached a record $9.93 billion on that same date.
On Tuesday, Grayscale’s Ethereum Trust (ETHE) saw an even greater increase in its daily trading volume, surpassing $684.44 million, the largest since it peaked at $842.67 million in May 2021.
Yesterday, ETHE’s discount to net asset value shrank to -6.7%, the lowest point in more than two years. As was the case with Grayscale’s Bitcoin Trust (GBTC) before to its conversion to an ETF on January 11, investors appear to be purchasing the discounted shares in advance of a prospective ETF conversion.
Spot Ethereum ETF odds sharply increase.
In a reversal of the general market sentiment, Bloomberg ETF analysts Eric Balchunas and James Seyffart sharply increased their probabilities of spot Ethereum ETF approvals on Monday from 25% to 75%.
As cryptocurrency increasingly becomes a political issue, Balchunas noted, the abrupt shift coincided with indications of a 180-degree turnabout from the SEC. The significant 19b-4 forms for the potential spot Ethereum ETFs were merely slightly updated, as requested by the SEC, and they might be approved as soon as today.
In the midst of the revived spot Ethereum ETF frenzy, ether has risen about 19% since Monday.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
