ETH Price Holds Firms Above $3,700 Despite Ethereum ETF Uncertainty, What’s Next?

7Ary...USep

9 Apr 2024

In the latest development, Defiance Investments has filed an application with the US SEC to introduce a 2x leveraged Ethereum futures ETF.

STORY HIGHLIGHTS

ETH price holds firm above $3,700 as spot Ethereum ETF discussions on the rise again.
Defiance Investment files with US SEC for 2x leveraged Ethereum futures ETF.
ERC20 assets have been in the limelight amid recent bounce back in the Ethereum price.

The world’s second-largest cryptocurrency Ethereum (ETH) made strong moves above $3,700 with more than 10% gains over the past week. As of press time, the ETH price is up by 8% trading at $3,704 with a market cap of $444 billion. At its current price, Ethereum is already trading 61% up since the beginning of the year.

ETH Price Rallies With Ethereum ETF Expectations

Ether has recently captured the cryptocurrency spotlight with its most significant surge in over a month, driven by speculation surrounding the potential approval of applications for US exchange-traded funds (ETFs) for the token.
Traders are closely monitoring the situation, anticipating a potential rally in Ether’s price if the Securities and Exchange Commission (SEC) permits spot Ethereum ETFs directly holding the token. Major investment firms like BlackRock Inc. and Fidelity Investments have submitted applications for such funds, but uncertainties persist regarding regulatory approval.
Similarly, the SEC’s decision to approve spot Bitcoin portfolios depended on the correlation between CME Bitcoin futures and the digital asset’s price movements. This correlation was considered sufficient for detecting fraudulent activities and market manipulation.
According to James Seyffart, an ETF analyst at Bloomberg, Defiance Investments has filed an application with the US Securities and Exchange Commission (SEC) to introduce a 2x leveraged Ethereum futures ETF. This ETF could potentially commence trading as soon as late June.

ERC20 Assets In Limelight

In recent updates from on-chain data provider Santiment, Ethereum’s strong performance at the start of the week has propelled ERC20 assets significantly ahead of the broader markets. Over the past week, the sector has seen an impressive growth of +8.1%. Notable performers include TON (+21%), LDO (+12%), and ENA (+12%), which continue to surge.
Courtesy: Santiment
Additionally, ERC20-based NFTs are experiencing renewed attention after a period of relative quiet. Discussions are emerging regarding Ethereum’s potential for growth, concerns about network congestion and gas fees, as well as anticipation surrounding the world’s first Ether staking ETF approval in Canada.

Bitcoin ETF Flows Turn Negative But BTC Price Holds Firm At $71,300

GBTC outflows above $300 million led to major Bitcoin ETF flows turning negative. BTC price volatility continues before halving.

TORY HIGHLIGHTS

GBTC outflows shoot past $300 million once again on Monday.
Bitcoin traders are betting on BTC price at $80,000 post halving.
Bitcoin short-term and long-term holders might put pressure on BTC price around the halving period.

On Monday, the world’s largest cryptocurrency Bitcoin made a strong move to $72,000 attempting a new all-time before the Bitcoin halving event. Interestingly, on the other hand, the Bitcoin ETF market turned negative with outflows to the tune of $200 million. The BTC price continues to hold firmly above $71,000 as of now.

Bitcoin ETH Flows Turn Negative

After registering $485 million of inflows during the last week, the Bitcoin ETF market has registered net outflows once again. On Monday, April 9, the total outflows from the newly launched spot Bitcoin ETFs were $223 million, as per data from Farside Investors.
As usual, the Grayscale Bitcoin ETF was the major show spoiler with outflows surging past $300 million. On the other hand, the inflows have also dried up considerably with BITB recording the most at $40 million. It seems that investors are taking a cautious stand ahead of the March CPI data release.

Halving and BTC Price Action Ahead

With the halving event looming just 11 days ahead, Bitcoin’s price is on the verge of surpassing the previous all-time high, which was only breached four weeks ago. Traders are buoyed by the prospect of reaching a post-halving market value of $80,000 to maintain mining profitability. On the other hand, some popular personalities like Arthur Hayes predict a Bitcoin price slump in and around the halving period.
As of press time, the BTC price is trading 2.35% up at $71,264 with a market cap of over $1.402 trillion. If BTC manages to sustain at this level, it can trigger the next leg of rally all the way to $85,000, says crypto analyst Ali Martinez.

Bitcoin (BTC) has exhibited significant price volatility in recent times, hovering around the $70,000 mark as holders capitalize on gains, as per the latest analysis from the “Bitfinex Alpha” report. Both short-term (STH) and long-term holders (LTH) are offloading a portion of their holdings as the upcoming halving event draws near.
“Bitcoin is currently experiencing a consolidation phase, navigating a sideways range between $65,000 (range low) and $71,000 (range high). This movement indicates that the price is beginning to stabilize, even as the price fluctuates,” the report states.