Ethereum vs Bitcoin ETFs: $ETH ETFs Make Efforts to Be Equal to $BTC ETFs in Trading Volume

A recent report from the blockchain and digital asset platform Galaxy Research discloses a significant dip in Ethereum $ETH ETFs.

A recent report from blockchain and digital asset platform Galaxy Research reveals a significant dip in the Ethereum (ETH) exchange-traded funds (ETFs). According to Galaxy Research, ETH ETFs have seen a considerably lower trading volume in comparison with the Bitcoin (BTC) ETFs. The platform took to its X account to offer insights into the current difference between the Bitcoin and Ethereum ETFs.

The platform's recent X posts have highlighted that $ETH ETFs have not met the anticipated levels of the community. Despite the huge expectations regarding them, the $ETH ETFs have not yet achieved the trading volume enjoyed by the $BTC ETFs. This difference between the top 2 crypto ETFs becomes evident while comparing the $BTC and $ETH's volume ratios on CEXs.

Several factors contribute to the $ETH ETFs’ underperformance when compared with the $BTC ETFs. One crucial point highlighted by Galaxy Research is that many key $ETH ETF trading entities have not yet introduced margin trading. Margin trading allows investors to borrow funds for increments in their trading positions, a concept that can substantially elevate trading volume.

The absence of this option for Ethereum ETFs has potentially discouraged more active institutional investors and traders from taking part, and as a result, the trading volumes have gone through an overall decline. To better consider the factors affecting these ETFs’ trading volumes, Galaxy Research's analysis targets the initial twenty-five trading days. In this period, it focuses on trading for every product set.

The data of Galaxy Research's analysis points out a continuous plunge in the $ETH ETFs over time, highlighting the downside of $ETH exchange-traded funds in relationship with $BTC ETFs. Such a trend signifies that $ETH ETFs are making efforts to reach the same investor interest level as the $BTC ETFs. One potential reason deals with the wider market perception concerning $BTC as the top store of value and “digital gold.”

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