Ethereum ETFs See Surge in Trading Volume

Four months after going live, spot Ethereum ETFs have recorded their highest weekly volumes since the third week of their inception in August.

This past week, Ethereum ETFs recorded over $1.63 billion in trading volume, up over 44% from the previous week.

During their first three weeks of trading, the combined volume of all ETH ETFs averaged about $566 million per day. From mid-August to the end of October, spot ETH ETF volume declined and stagnated, averaging around $168 million per day. However, this figure has spiked this past week, averaging over $326 million worth of volume per day.

This pattern of heightened trading volumes in its first trading weeks, followed by a prolonged period of relative volume downturn before a sustained period of even higher trading volumes, is reminiscent of what occurred with the Bitcoin ETFs.

For context, during its first seven trading days, the combined BTC ETFs averaged $2.36 billion in daily trading volume. This was followed by a month-long “quiet” period during which they averaged just $1.4 billion in daily volume.

Following this month-long “quiet” period, though, BTC ETF volumes exploded, averaging a staggering $5.4 billion worth of volume per day for the next four weeks, from Feb. 26 to March 28.

During this period of heightened ETF volume, the price of BTC rose by over 35%, increasing from roughly $50,900 to a new all-time high of around $74,000.

Notice the pattern: Initial volume spike from enthusiasm and excitement, a relative period of reduced trading volumes, followed by a sustained and significant increase in volumes, which is accompanied by a similarly notable increase in the price of the asset.

For reference, this past week, following the highest recorded trading volumes of its ETFs in three months, the price of ETH has increased by 25%, its largest weekly gain in six months since May. This is by no means a price prediction or a suggestion to buy, but it is definitely a metric worth keeping an eye on.

This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.