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Ethereum Buyups Soaring amid Enthusiasm for ETH ETF Approval

UTC by Benjamin Godfrey · 3 min read
Ethereum Buyups Soaring amid Enthusiasm for ETH ETF Approval
Photo: Depositphotos

American regulators, including the SEC and Commodity Futures Trading Commission (CFTC), are now more open-minded to ETF products, particularly those tracking futures prices. 

The accumulation of Ethereum (ETH), the world’s second-largest digital currency, is on the rise amid anticipation of the probable launch of an Exchange Traded Fund (ETF) tracking the future price of the coin. Per a Financial Times report, investors are optimistic about the possibility of the United States Securities and Exchange Commission (SEC) approving an Ethereum-linked ETF by year-end or in the first quarter of 2022, and this is in no small measure fueling the growth of Ether.

“Simply put, the market seems bullish with regards to ethereum’s potential by year-end or the first quarter,” Luuk Strijers, chief commercial officer at Deribit, one of the biggest crypto options trading venues, said.

The digital currency is changing hands at $4,153.64 at the time of writing, atop a 3.68% growth in the past 24 hours. Despite the observable volatility in the price of the digital currency, its growing trading volume, as seen in the past week is indicative of renewed interest in the coin by investors.

While Ethereum is 4.64% below its previous All-Time High (ATH) of $4,366.09, set exactly a week ago, there is a projection that the coin is on track to hit $15,000 by March next year when an ETF product is finally approved. Based on this, many traders are positioning for the impending massive price upshoot.

The growth in the price of Ethereum has been observed to begin at the time the ProShares ETF was confirmed.

“This flow began around the time the bitcoin ETF was confirmed, and is thought to be whales positioning for an ethereum futures ETF announcement,” Adam Farthing, chief risk officer for Japan at crypto specialist trading firm B2C2 in reference to large Ethereum holders.

Despite the build-up in the anticipation for an Ethereum based ETF, there is no clear-cut certainty for the timing one of such products would be approved for trading on the public bourse.

Ethereum ETF Approval: Overview of American Regulators Disposition

American regulators, including the SEC and Commodity Futures Trading Commission (CFTC), are now more open-minded to ETF products, particularly those tracking futures prices.

“The SEC and Commodity Futures Trading Commission have shown they are going to be deliberate but open-minded about the crypto-related funds they are willing to allow, and the past week has shown there is demand for these kinds of products,” Steven McClurg, chief investment officer at Valkyrie Funds.

With many digital currencies displaying unique fundamentals and high demand from both retail and institutional investors, the emergence of ProShares Bitcoin Futures ETF on the New York Stock Exchange is bound to serve as the first of many related products to come. Should an Ethereum linked ETF be approved, investors will be more confident to propagate the possibility of the cryptocurrency flippening Bitcoin in the mid to long term.

Altcoin News, Cryptocurrency news, Ethereum News, Funds & ETFs, Market News
Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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