Spot Ethereum ETFs have made a remarkable debut on the market, exceeding $1 billion in trading volume within their first day. This performance mirrors the early success of Bitcoin ETFs, which launched in January and also experienced a strong start. Despite the high trading volume, some analysts believe that Ethereum ETFs are still undervalued, suggesting that an ETH explosion may be imminent.
Impressive Early Trading Volume
Within the first 15 minutes of trading, Ethereum ETFs recorded an impressive $120 million in volume. This robust activity continued throughout the day, yet the price of Ethereum has not seen a significant jump. As of now, Ethereum is trading at $3,478.30, showing only a 1% increase in the past 24 hours. This pattern is similar to Bitcoin’s initial ETF performance, where trading volumes were high, but the price surge took a few weeks to materialize. If Ethereum follows Bitcoin’s trajectory, August could be a dominant period for Ether and its ETFs.
Bullish Sentiment and Future Projections
Entering Q4 of 2024, analysts were already optimistic about Ethereum, and the first-day trading activity of its ETFs has reinforced this sentiment. The price charts indicate that a key resistance level at $3,730 must be breached to trigger a significant price boom. Once this level is surpassed, Ethereum could potentially begin its rise towards $4,000.
Many traders are closely watching Ethereum, anticipating a surge following the launch of the ETH ETF. The trading volume has already increased by more than 110% just a day before the launch, and now, with volumes surpassing $1 billion on the first day, continued strong performance seems likely.
ASXN’s Bullish Prediction
Crypto-analytic research firm ASXN has predicted that spot Ethereum ETFs will generate monthly inflows of $1.2 billion. This forecast is partly based on Grayscale’s recent fee adjustment, reducing its initial 0.25% fee to 0.15%. This change is expected to attract more interest in the product. If bullish investors hold onto Ether during the early weeks of ETF trading, achieving all-time high profits seems inevitable.