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Yesterday, the Ethereum ETF was approved. Ethereum ETF approval could increase growth by 60%. Because the purchase of Ethereum has increased.
QCP said this forecast shows the market reaction after the approval of the Bitcoin ETF in January.
Approval of spot ether exchange-traded funds (ETFs) in the US could lead to a significant increase in the value of the token, mirroring the market reaction seen in bitcoin ETFs.
Bitcoin rose from $42,000 to more than $73,000 in the two weeks after the ETF began trading on Jan. 11, data from CoinGecko shows.
The Ether ETF decision will soon be accompanied by significant buying activity on centralized and blockchain-based exchanges.
Approval of exchange-traded funds (ETFs) in the United States could boost the second-largest cryptocurrency by 60 percent in the coming months, according to QCP Capital.
The Singapore-based firm said it anticipated market reaction after the approval of the Bitcoin ETF in January. Bitcoin rose from $42,000 to more than $73,000 in the two weeks after ETFs began trading on Jan. 11, data from CoinGecko shows.
“With Friday’s implied volatility above 100%, the market is expecting fireworks,” QCP said. The VanEck ETF is listed by DTCC. We think confirmation is very likely now. Because the transactions are expected to be done early next week.
Implied volatility measures the market’s expectations of future price volatility of a financial instrument.
In a report on Wednesday, chain analytics firm CryptoCoint announced that buying activity on centralized and blockchain-based crypto exchanges has increased. Holders bought more than 100,000 ETH in cash markets on Tuesday, the highest daily level since September 2023. As reports of a favorable decision emerged, some analysts raised the odds to more than 75% from the previous 25%.
Activity picked up at the Chicago Mercantile Exchange, a favorite among institutions, according to a spokesman. Ether futures hit a real record high of $2.85 billion on Tuesday. Ether options traded a record 1,135 contracts ($216 million).
“Traders seem to have more exposure to ETH than Bitcoin right now,” CryptoQuant said. “Largest daily spot purchase of permanent ETH holders so far in 2024.”
Ether prices may fluctuate in the coming days after investors sent 62,000 Ethereum to exchanges, the most since early March. “High currency flows are usually associated with price volatility.”
On the other hand, company analysts warned of a “significant price correction” if the ETF application is rejected.
Six issuers, including BlackRock, filed updated versions of their ether ETF offerings this week ahead of today’s decision. All plans to share the token have been removed, indicating that this activity may have been a legal hurdle.
Staking is the process of locking up a cryptocurrency for a certain period of time to help support the operation of a blockchain in exchange for a reward. These bonuses are mostly considered passive income among cryptocurrency traders.
According to data from the popular Lido staking service, the annual return on staking Ether was approximately 3%.
