Spot Ether ETF Surges to $1.1B Trading Volume, Challenging Bitcoin Dominance

• Just 24 hours after the SEC gave formal approval, Ethereum ETFs have recorded a staggering $1.1 billion in trading volume.
• Analysts believe that Ethereum’s price will follow a similar price trajectory to Bitcoin, post-ETF launch.

On Tuesday, the U.S. Securities and Exchange Commission gave formal consent for the Ether Exchange Traded Funds offering investors exposure to the world’s second-largest cryptocurrency via traditional markets. With just 24 hours of trading, Ethereum’s ETF reached a staggering $1.1 billion in trading volume. 

While this substantial figure has disrupted the status quo, according to Bloomberg analyst Eric Balchunas, this figure represents a significant 23% of the trading volume witnessed on the first day of spot Bitcoin ETFs. Notably, Blackrock, a financial behemoth, alone contributed a substantial 25% of the volume recorded by the leading spot Bitcoin ETF.

Additionally, Market analyst James Seyffart has come forward with estimates of between $125 million and $325 million, depending on pre-existing investor participation. This figure is bolstered by the $625 million difference in volume between Grayscale’s long-standing Ethereum Trust (ETHE) and the newly launched ETFs.

Ethereum ETF’s Impact on ETH Price and Bitcoin Correspondence

The launch of Ethereum ETFs has ignited heightened discussions about the future price trajectory of Ethereum and its relationship with Bitcoin. Most financial experts anticipate that investors will likely hold both assets for diversification, including Bitwise CIO Matt Hougan who suggests a portfolio allocation of 60% Bitcoin ETP, 30% Ethereum ETP, and 10% Crypto Equities ETP.

Nevertheless, one Jay Jacobs, U.S. head of active and thematic ETFs at BlackRock begs to differ. While many like to dab Bitcoin as the digital gold, Ethereum’s appeal lies in its decentralized nature and its potential to drive digital transformation in finance and other industries, where investing in Ether is more often than not considered a bet on the long-term potential of blockchain technology and the cryptocurrency landscape. 

Additionally, as earlier reported on CNF, analysts have predicted that Ethereum’s price movement might mirror that of Bitcoin since the Ethereum ETF is already underway. While, after the launch of Ethereum, ETH saw a slight 1% drop, this price movement is lined up with Bitcoin’s initial price movement after the debut of Bitcoin ETFs. Analysts forecast that Ethereum’s price will later bloom correspondingly to Bitcoin which after weeks started surging. 

Analysts Predict Bullish Momentum

Ethereum’s commendable performance has instilled a bullish sentiment among analysts. At the time of writing, ETH is swapping hands at $3,462.35 marking a 1.74% drop in the last 24 hours. However, Ethereum is facing a crucial resistance level of $3,730 and a breakthrough at this level means a potential price rally. 

Also, there has been a noble rise in the Ethereum-to-Bitcoin price ratio which has shifted from 0.045 pre-approval to 0.05. This upward trend suggests a potential for Ethereum to outperform Bitcoin in the coming period. 

While focusing on the prospects of Ethereum ETFs to Bitcoin ETFs, As earlier reported Bitcoin ETFs including BlackRock Bitcoin ETF have seen the number of inflows surpassing a staggering $19.5 billion. However, due to the different market sizes and familiarity of the two digital assets Ethereum ETF’s inflow is not expected to match that of Bitcoin ETFs. This is a sentiment shared by Sam Callahan, a senior analyst at Swan Bitcoin.

Ethereum is just a bit more confusing and unclear for individual investors, as well as institutional investors,