Key Points
- Bitcoin (BTC) and Ethereum (ETH) ETFs see increased trading volumes amidst market volatility.
- BlackRock and Nasdaq propose options trading for Ethereum ETFs.
The past month has seen heightened volatility in the cryptocurrency markets, with Bitcoin (BTC) and altcoins experiencing significant declines. Despite this, the trading volume for Bitcoin ETFs has surged, doubling amidst the market downturn.
BTC ETF Trading Volume Soars
During the market crash, Bitcoin ETFs saw a surge in trading volume, reaching over $5.7 billion. This increase came as a result of 48 hours of intense market volatility. Data from Coinglass indicates that ETF outflows have remained steady over the same period, at a moderate $84.1 million. The net assets, meanwhile, remain at $48 billion, suggesting a positive market response to ETFs amidst the uncertainty surrounding crypto tokens.
Recovery of BTC and ETH ETFs
Ethereum ETFs, which were launched last month, reported substantial outflows, impacting Ethereum (ETH) prices. These outflows reached over $2 billion, raising concerns about the ability of Ethereum ETFs to compete with Bitcoin ETFs. Similarly, Bitcoin ETF outflows hit a six-month high. However, over the last 24 hours, Bitcoin ETFs have seen a record high in trading volume, surpassing $1.3 billion.
Despite the recent market downturn, BTC and ETH prices have shown signs of recovery. Bitcoin fell below $50k, a two-month low, while Ethereum hit a low of $2116. This decline was largely due to increased crypto liquidations following a crash in global stocks. However, ETF holders largely held their positions during this downturn, contributing to a recovery in BTC and ETH prices.
BlackRock and Nasdaq Propose Ethereum ETF Options
Adding to the positive news for Ethereum ETFs, BlackRock and Nasdaq have proposed adding options to Ethereum ETFs. The firms have submitted a filing to the SEC, suggesting a rule change that would allow options trading of the iShares Ethereum Trust (ETHA). This move comes just three weeks after the launch of Ethereum ETFs and could provide investors with a lower-cost tool for gaining exposure to Ethereum.
