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This past week, Ethereum ETFs hit their highest trading volume since they launched. They recorded over $1.63 billion in trading volume, which is up more than 44% from the week before. Let’s break this down.
Four months after going live, spot Ethereum ETFs reached their peak weekly volumes since the third week of trading back in August. In those first three weeks, the average daily trading volume across all ETH ETFs was about $566 million. But from mid-August to the end of October, things slowed down. The average dropped to around $168 million per day. Recently, though, that number spiked again, averaging over $326 million per day.
This pattern of high trading volumes in the beginning, followed by a slow period, and then a rise again is similar to what we saw with Bitcoin ETFs. For reference, during their first seven trading days, Bitcoin ETFs averaged $2.36 billion in daily trading volume. After that, they experienced a month-long quiet period, averaging just $1.4 billion per day.
Then came the exciting part. After that quiet month, Bitcoin ETF volumes skyrocketed. They averaged an impressive $5.4 billion per day for the next four weeks, from February 26 to March 28. During this surge, the price of Bitcoin rose over 35%, climbing from around $50,900 to a new all-time high of about $74,000.
Notice the trend? There’s an initial spike in volume due to excitement, followed by a lull, and then a significant increase in both volume and price.
Last week, after those peak trading volumes for its ETFs, the price of Ethereum jumped by 25%. That’s its biggest weekly gain in six months, since May. This is definitely something to keep an eye on.
This information comes from The Block's Data & Insights newsletter, where we dig into numbers that reveal the most interesting trends in the industry.