After less than a full day of trading on the market, Spot Ethereum ETFs have already surpassed $1 billion in trading volume. Similar to Bitcoin ETFs on the first day of trading in January, Ethereum ETFs have had a flying start. However, some analysts feel that this is just the beginning and that the ETFs are still undervalued. If that’s the case, an ETH explosion may be coming.
Within just 15 minutes of trading, the ETFs recorded an impressive volume of $120 million. On the other hand, though, the price of Ethereum has yet to boom to projected highs following the launch. At press time, Ethereum is trading at 3,478.30, only a 1% uptick in 24 hours. Bitcoin had a similar start to its ETF campaign, with the ETFs trading well but prices not catapulting. It took a few weeks for Bitcoin to start to surge, and over a month for it to reach an all-time high. If Ethereum mocks this model from BTC, August could be the period of dominance for Ether and ETFs.
Analysts were already more bullish than ever on ETH entering Q4 of 2024 before the launch of Ethereum ETFs. However, the first-day trading activity proves even more promising for the asset. Looking at the price charts of Ethereum there is a resistance level that needs to be breached to spark the boom for the asset’s price which may take a few days like BTC did. Once this level is breached though, specifically above $3,730, Ether can start its rise.
How High Can Ethereum Go Following ETF Launch?
Also Read: Ethereum ETFs Officially Begin Trading in the US
Many traders have their eyes on Ethereum, surging to $4,000 after the launch of the coveted ETH ETF. There is certainly increased activity, with trading volume surging more than 110% just a day before its arrival. Now that trading volume has already breached $1 billion on Day 1, the coming days should prove very similar for the asset.
Crypto-analytic research firm ASXN predicted that spot Ethereum ETFs will generate monthly inflows of $1.2 billion. They noted that the forecast is rooted in Grayscale’s recent fee change. The firm restructured its product, adjusting its initial 0.25% fee, and decreasing it to 0.15%. The move should only drive more interest in the product. If the bullish investors can keep hold of Ether during the opening weeks of ETF trading, all-time high profits are almost unavoidable.