Ethereum ETFs gain traction with $13 billion in trading volume, but ETH price impact remains subdued

We’ve just passed two months since the launch of spot Ethereum ETH +3.71% ETFs in the U.S., and we thought it was an appropriate time to do a roundup. Since their launch on July 23 , Ethereum ETFs have been chugging along, accumulating $13 billion in cumulative spot volume across nine funds. 

For context, the BTC ETFs surpassed $13 billion in cumulative volume in the first seven days. While the ETH ETF performance might appear weak, trading volume in the initial days was in line with analyst predictions .

Daily trading volumes have settled into a rhythm, consistently hovering between $100 and $250 million. While not as explosive as some had hoped, this steady flow indicates a sustained interest from institutional investors.

The Grayscale Ethereum Trust (ticker ETHE) has remained the frontrunner, commanding 40% of the volume share. With $4.23 billion in assets under management (AUM), ETHE accounts for nearly two-thirds of the total $6.7 billion AUM across all Ethereum ETFs.

Despite the initial hype, the ETFs' impact on Ethereum's price has been muted. The lukewarm price action suggests that much of the anticipation may have been priced in before the ETFs hit the market.

However, the importance of these ETFs extends beyond mere price movements:

• They represent a crucial step towards mainstream acceptance and regulatory validation for the crypto industry.
• The sustained on-chain activity generated by these ETFs is vital for the longevity of Ethereum miners, who face challenges with lower transaction fees in the post-Merge era.

Looking ahead, the U.S. presidential election could provide an unexpected boost to the crypto ETF landscape. Both major candidates have signaled  support for the industry, potentially paving the way for a more crypto-friendly regulatory environment.

As we watch this space evolve, one question looms large: Can Ethereum ETFs replicate the success of their Bitcoin counterparts, or will they carve out their own unique path in the world of institutional crypto investments?

This is an excerpt from  The Block's Data & Insights newsletter . Dig into the numbers making up the industry's most thought-provoking trends.