In addition to Bitcoin spot ETFs, Ethereum spot ETFs have also received much attention recently. However, can spot ETFs really bring new upward momentum to ETH? In this article, we review the impact and trading volume of the October Ethereum Futures ETF on currency prices
In addition to Bitcoin spot ETFs, Ethereum spot ETFs have also received much attention recently. However, can spot ETFs really bring new upward momentum to ETH? In this article, we review the impact and trading volume of the October Ethereum Futures ETF on currency prices.
Ethereum (ETH) prices surged as high as $2118 around 0:15 am today (14th), but then there was a surge in selling pressure, and as Bitcoin fell, the coin price also quickly fell. The current price of the manuscript is $2047, which has dropped by 1.13% in the past 24 hours.
Ethereum trend.
BlackRock's application for Ethereum spot ETF can drive an increase
At present, most investors in the cryptocurrency market generally believe that once the Bitcoin spot ETF passes the level, it will introduce a large amount of new funds and catalyze the next bull market.
Therefore, since asset management giant BlackRock confirmed that it, along with Nasdaq, submitted a 19b-4 document to the SEC, plans to apply for the Ethereum spot ETF "isharesEthereum Trust".
The price of Ethereum broke through the $2000 mark from $1900, shrugging off the recent gloom of underperforming Bitcoin growth, highlighting the market's great optimism towards Ethereum spot ETFs.
Can Ethereum spot ETFs really ignite ETH?
But although investors who have been deeply trapped in the bear market for a long time are eagerly hoping that spot ETFs can add a new spark to exacerbate the bull market, Wall Street giant JPMorgan Chase doubts this argument.
They believe that existing capital is more likely to be transferred from existing Bitcoin products such as grayscale GBTC, Bitcoin futures ETFs, listed mining companies... to newly approved spot ETFs, rather than new capital flowing into the cryptocurrency market.
How did Ethereum Futures ETFs perform?
According to a report from the Dynamic Zone in early October, a total of nine Ethereum related futures ETFs were officially launched on October 2nd after approval by the US Securities and Exchange Commission (SEC). However, the first day trading volume of these 9 Ethereum futures ETFs was low, with a total trading volume of slightly less than $2 million.
Compared to the BTC futures ETF (BITO) launched by ProShares in 2021, which accumulated over $320 million in trading volume within 30 minutes of opening, and broke the record of over $1 billion in trading volume on the first day, it appears much more distant.
In addition, the listing of futures ETFs did not boost the spot prices of ETH at that time, and instead, the currency price showed a slight decline. Based on the above considerations, Dynamic Zone reminds investors that it is currently uncertain whether the Ethereum spot ETF has sufficient power to drive the rise of ETH. Please be cautious of investment risks.
Five other Ethereum spot ETFs are waiting for approval
In addition to BlackRock, there are currently 5 institutions that have submitted applications and are waiting for regulatory approval. They are:
- In early September, Ark Investment, a subsidiary of female stock god CathieWood, and ETF issuer 21Shares jointly submitted their first Ethereum spot ETF application, named "ARK21Shares ETHEREUMETF";
- VanEck took the lead in submitting its S1 application for Ethereum spot ETFs in May 2021, and its cooperating CboeBZX exchange submitted Form 19b-4 on September 6;
- Hashdex has submitted a strategy adjustment application;
- The Invesco Galaxy Ethereum ETF and Grayscale Ethereum Trust (ETHE) have also submitted transformation applications, respectively.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
