Cryptocurrency investment funds saw a surge in trading volume last week following the launch of an Ethereum spot exchange-traded fund (ETF) in the United States, but inflows fell sharply from the previous week as at least one fund saw assets exit.
be CoinShares Report The report, released on Monday, said total trading volume in these trading funds reached $14.8 billion, “the highest level since May,” driven by the launch of an Ethereum fund, while total assets under management in this category of derivatives reached $99.1 billion, with inflows of $20.5 billion since the start of the year.
Digging deeper into the numbers, an entirely new Ethereum ETF fund brought in $2.2 billion worth of assets, CoinShares said, marking the “largest inflows since December 2020.” The report also noted that the launch of the spot Ethereum ETF was accompanied by a 542% increase in trading volume for exchange-traded funds tracking Ethereum.
However, Grayscale’s existing Ethereum fund, which converted into a spot ETF last week, has seen significant outflows as traders may have moved their money to other funds due to its higher fees than other Ethereum ETFs. CoinShares also pointed to Grayscale’s new Ethereum Mini Trust ETF. Ethereum Trust ETF releases nearly $1 billion worth of assets.
The report was also published in the United States. SEC approved New York Stock Exchange (NYSE) exchange Arca has requested Grayscale’s Bitcoin MiniTrust shares to be listed. Like the Ethereum MiniTrust, the new product is a low-fee product intended to compete with more competitively priced alternatives offered by other asset managers.
Meanwhile, the Bitcoin ETF saw what CoinShares described as “healthy” inflows worth $519 million during the same week. Down from $1.27 billion Still, the amount brings inflows to $3.6 billion so far this month and $19 billion so far this year, the highest ever.
Interest in a spot Bitcoin ETF continued last week amid rumours of an announcement regarding former US President Donald Trump’s planned future for a National Bitcoin Strategic Reserve. Revealed on Saturday At the Bitcoin 2024 conference, Republican Senator Cynthia Lummis detailed a similar plan, though it’s not clear if it’s the same one.
“We believe that comments made during the US election campaign about Bitcoin becoming a strategic reserve asset, as well as the increased likelihood of a Fed rate cut in September 2024, suggest that Bitcoin could have a negative impact on the US economy.” [reasons] to reinvigorate investor confidence,” CoinShares wrote.
