Spot Ether ETF Hits $1.1B Volume, BTC Dominance Under Threat?

Spot Ether ETFs have had a strong start, reaching the $1 billion trading volume on the first day of their launch. This major achievement came shortly after the SEC gave its nod to several issuers’ S-1 registration filings indicating that there is high interest in the market and possible changes in the cryptocurrency investment market.,On 23rd July, the Ethereum ETFs went live, and within the first day, the total trading volume reached nearly $1.1 billion. Bloomberg analyst Eric Balchunas pointed out that the combined trading value of the new ETFs was 23% of what was traded in the spot Bitcoin ETFs on their first day.,Of these, BlackRock’s Ethereum ETF (ETHA) contributed to 25% of the volume registered by the spot Bitcoin ETF (IBIT).,,James Seyffart, another market analyst gave an estimate that the net flow for the day could be between $125 million and $325 million depending with the number of pre-existing investors. The difference between Grayscale’s long-standing Ethereum Trust (ETHE) and the newly launched ETFs was $625 million which is expected to bring in more inflows.,The launch of these ETFs has given rise to different expectations about the price of Ethereum and its relationship with Bitcoin. Bitwise CIO Matt Hougan added that investors will probably also own both BTC and ETH as a hedge. Hougan recommended that the portfolio be split as 60% in Bitcoin ETP, 30% in Ethereum ETP and the remaining 10% in Crypto Equities ETP.,The same sentiments are echoed by other market analysts who believe that Ethereum will mimic the performance of Bitcoin after the launch of the ETF. Even though there was high trading activity, the price of Ethereum only slightly dropped by 1% on the first day of ETF trading. This pattern replicates the price action of Bitcoin in the period shortly after the launch of ETF where the prices of the digital asset only rose weeks after the initial trading began.,After the introduction of the Bitcoin ETF, the initial price movement was slow, but there was a rapid increase in the following weeks, which led to an all-time high. Similarly, Ethereum may also follow the same trend with August being the month of dominance for the cryptocurrency and its ETFs.,This being the case, as spot Ether ETFs remain to deliver strong results, analysts are bullish on the asset’s future value. However, the price needs to break through the current resistance levels at around $3,730 for a price rally.,The price ratio of Ethereum to Bitcoin has also gone up to 0.05, from the pre-approval level of 0.045. This increase suggests that the ratio of Ethereum to Bitcoin is increasing which could be a signal of further outperformance of Ethereum.,Read Also: XRP News: Lawyer Seeks Ripple Lawsuit Drop Amid Kamala Harris’ Crypto Pivot,