Ethereum turns hot cake, highest inflows since August 

Spot Ethereum ETFs have seen their highest weekly volumes since the third week of their launch in August. ETH ETFs saw over $1.63 billion in trading volume last week, more than 44% more than the week before.

The total daily volume of all ETH ETFs during their first three weeks of trading was roughly $566 million.  Spot ETH ETF volume decreased and remained stagnant from mid-August to the end of October, averaging only about $168 million daily. this number has increased to an average of over $326 million in volume per day   during the past week,

Like what happened with the Bitcoin ETFs, this pattern of increased trading volumes in the initial trading weeks, followed by a protracted period of relative volume decline, and finally a prolonged period of even higher trading volumes is reminiscent.  

For comparison, the combined BTC ETFs saw an average daily trading volume of $2.36 billion over the first seven trading days. After that, there was a month-long “quiet” period during which their daily volume averaged only $1.04 billion.

However, after this month-long “quiet” period, BTC ETF volumes skyrocketed, averaging an incredible $5.4 billion in volume daily for the following four weeks, starting in February.   Bitcoin’s value increased by more than 35 percent and reached a new all-time high of about $74,000 during this time of increased ETF volume.

ETH’s price has risen by 25% this past week, the highest recorded trading volumes of its ETFs in three months. This is the largest weekly gain in the six months since May.   The initial volume spike was caused by enthusiasm and excitement, followed by a relative period of reduced trading volumes, and then a sustained and significant increase in volumes, accompanied by a similarly notable increase in the asset’s value   Ethereum ETFs are now riding a wave of post-election momentum.

Analysts ascribed ETHE’s significant outflow trend to the product’s comparatively high expense ratio, which makes it more expensive to hold than competing products. Shortly after, investors seemed more at ease with Ethereum after Donald Trump’s win, suggesting that the president-elect will lead a pro-crypto administration.

This contrasts with the global markets, which were caught off guard by macro jitters and an unwinding yen “carry trade.”.   With a shift in sentiment on Capitol Hill, lawmakers who support cryptocurrencies might also encourage more builders to develop applications on top of the Ethereum network.