Ethereum ETFs See Strong First Week, As Lummis Pushes for US Treasury to Buy 1 Million Bitcoin

In a week packed with action, as many would argue, the first week of Ethereum ETFs on Wall Street was met with a warm reception. The launch of the spot Ethereum ETF in the United States saw a surge in weekly trading volume to $14.8 billion. 

However, the week was equally besmirched with some setbacks. The nine ETFs collectively posted net outflows of $341.8 million compared to a $1.26 billion net inflow into the spot Bitcoin ETFs during their first four trading days. Despite this, four of the funds saw solid traction.

In their first week, #Ethereum ETFs hit $4.05 billion in trading volume, making up 34% of spot Bitcoin ETFs’ $11.82 billion in four days.

Grayscale's $ETHE led with a 52% market share, followed by BlackRock's $ETHA (21.7%), Grayscale's $ETH (12%), and Fidelity's $FETH (8.4%). pic.twitter.com/HrfCjkctwQ

— Max Planck (@MaximistPlanck) July 29, 2024

From Tuesday to Friday, per a Coinfomania report, BlackRock’s Ethereum investment fund (ETHA) received $442 million in new investments. Two other Ethereum funds, Bitwise (ETHW) and Fidelity (FETH), received $266 million and $219 million, respectively. However, if we exclude one fund (ETHE), Ethereum funds got about 40% of the $2.89 billion invested in Bitcoin funds during the same period. In their first week, Ethereum funds traded $4.05 billion, which is 34% of the $11.82 billion traded by Bitcoin funds in their first four days. Meanwhile, 21Shares added Chainlink Proof of Reserve to show the exact amount of ether backing its Ethereum fund (CETH), making it more transparent. 

#Ethereum ETF first 4 days attracts $2.2B inflows. (Excluding GrayScale Outflow).

Once GrayScale pressure absorbed by other ETFs, imagine the price surge. https://t.co/U7BTJX62ov pic.twitter.com/CH2Iph0up3

— Albert Gray (@Albertcrypto_) July 29, 2024

Despite the early outflows, James Butterfill from CoinShares thinks this isn’t a bad sign. He says “It likely represents a mix of clients taking profits for the first time in many years and switching to cheaper products.”

The new Ethereum ETFs after the first week saw US$1.18bn of inflows, although the massive outflows from incumbent Grayscale have meant a net outflow of US$338m. pic.twitter.com/LdjLcuQSmF

— James Butterfill (@jbutterfill) July 29, 2024

Lummis Announces Bill for US Treasury to Buy 1 Million BTC

In a notable plunge, U.S. Senator Cynthia Lummis proposed a bill for the U.S. government to purchase 5% of the world’s Bitcoin supply and hold it for at least 20 years. The plan is to acquire one million Bitcoins, roughly 5% of the total 21 million Bitcoin supply. At the current Bitcoin price of $69,662, this acquisition would cost approximately $73 billion.

ICYMI: I just announced I will introduce legislation to establish a strategic Bitcoin reserve! #Bitcoin2024 pic.twitter.com/P36AcdmPFF

— Senator Cynthia Lummis (@SenLummis) July 27, 2024

Lummis emphasized the long-term benefits of this investment, suggesting that holding Bitcoin, rather than traditional assets that depreciate by at least 2% annually, would offer significant value growth. She declared, “It can be used for one purpose: to reduce our debt.”

Over five years, the United States will assemble one million Bitcoin, 5% of the world’s supply! #Bitcoin2024 pic.twitter.com/mPuqbq9RK8

— Senator Cynthia Lummis (@SenLummis) July 27, 2024

The initiative would begin by moving the 210,000 Bitcoin the US government currently holds into a Treasury-managed reserve. This reserve will accumulate 1 million BTC over five years, representing 5% of the global supply.

The post Ethereum ETFs See Strong First Week, As Lummis Pushes for US Treasury to Buy 1 Million Bitcoin appeared first on Coinfomania.