Bitcoin and Ethereum prices rose due to ETFs
In the past month, the cryptosphere has been a roller coaster ride of highs and lows. Particularly in the last 48 hours, we witnessed a significant downturn in the cryptocurrency markets, with Bitcoin plunging below the $49,000 mark as other digital currencies also faced sharp declines.
During this period of intense market fluctuation, the trading volumes for Bitcoin ETFs soared, hitting an impressive $5.7 billion.
Coinglass data indicates a stabilization in ETF outflows during this volatile period, maintaining at a modest $84.1 million over the two days. Furthermore, it was noted that the total net assets held steady at $48 billion, signaling a strong investor interest in ETFs despite the ongoing uncertainty surrounding cryptocurrency tokens.
Following their introduction last month, Ethereum ETFs saw significant outflows, impacting Ethereum's market price. The outflows from ETH ETFs were notable, surpassing $2 billion, with ETHE experiencing $2.1 billion in outflows, raising questions about Ethereum ETFs' competitiveness against their Bitcoin counterparts.
Additionally, Bitcoin ETFs experienced unprecedented outflows in the last six months. On the day of the market downturn, outflows peaked at $168.4 million, with the Grayscale BTC Trust ETFs and ARK 2iShares BTC ETFs experiencing the most significant withdrawals.
However, a remarkable rebound occurred in the last 24 hours, with Bitcoin ETFs achieving record trading volumes, surpassing $1.3 billion shortly after trading commenced on July 6th. iShares Bitcoin Trust led this surge, boasting over $1.27 billion in trading activity.
After struggling to overcome recent lows, both Bitcoin and Ethereum have seen their market prices improve. Bitcoin fell to a two-month low, dropping below $50,000, while Ethereum's price dipped to $2,116.
This downturn was a consequence of a broader market selloff, triggered by a $1.2 billion liquidation in cryptocurrencies, echoing a downturn in global stock markets.
In spite of this, Bitcoin's market price has shown resilience, now trading at $56,888 following a 1.97% increase in the past 24 hours, and demonstrating a significant rebound from a low of $49,577.
As a result, during the market's downturn, Bitcoin ETF trading volumes surged to $5.2 billion, even surpassing trading volumes recorded in January following the ETF launch. Simultaneously, Ethereum ETFs, which previously suffered massive outflows, reported a substantial inflow exceeding $49 million.
Thus, the spike in ETF trading volumes and inflows has been instrumental in propelling the prices of Bitcoin and Ethereum upwards after their recent two-month lows.
In a further development likely to inspire confidence in Ethereum ETFs amidst market volatility, BlackRock and Nasdaq have made a significant move.
Reports reveal that the two financial giants have proposed adding trading options for Ethereum ETFs through ETHA (iShares Ethereum Trust). This initiative, laid out in an SEC filing by Nasdaq and BlackRock, is aimed at enabling options trading for the iShares Ethereum Trust (ETHA).
This filing emerges nearly three weeks following the introduction of Ethereum ETFs, amid high levels of market uncertainty around these financial products. Nonetheless, the markets have regarded this development as a successful addition, necessitating expanded trading options.
