– Jim Cramer speculates on the possibility of an ETH ETF, inspired by the success of its BTC alternative.
– Bitcoin ETFs set another record with trading volumes hitting $2.6 billion.
– Amid an ongoing rally only halfway through Wednesday, Balchunas terms the situation a “craze”.
– Overflows from the spot ETFs are spilling into futures ETFs and stocks, according to Balchunas.
Following the landmark approval of multiple spot Bitcoin exchange-traded funds (ETFs) on January 10, this has been the abounding theme in the cryptocurrency market.The lead crypto analyst at FXStreet attributed the narrative to the surge in Bitcoin price, which now stands about 50% higher since the investment product started trading.
Also Read:
BTC Price Outlook: Bitcoin OTC markets have so little supply they will be buying off exchanges
Ethereum ETF could come soon
Acknowledging the ongoing frenzy in the cryptocurrency market, CNBC’s host of Mad Money, Jim Cramer, says an ETH ETF could come soon following the success of the Bitcoin ETFs.
Given the success of the bitcoin etf it’s pretty obvious that an ethereum etf will soon bloom— Jim Cramer (@jimcramer)
[February 28, 2024]
While the assumption comes shortly after his
rhetoric, “What has Bitcoin ever done for Bitcoin,” the main inspiration for Cramer’s remarks is the impressive numbers that BTC ETFs continue to record.
As detailed by ETF specialist Eric Balchunas, trading volumes have hit a new record with nine Bitcoin ETFs already breaking their all-time daily volume record of $2.6 billion.This is no mean feat, considering the numbers came only halfway through the trading day.
JEEZ: Only halfway through trading day and New Nine bitcoin ETFs have already broken their all time daily volume record w/ $2.6b.We got 4 btc ETFs in Top 20.— Eric Balchunas (@EricBalchunas)
[$IBIT]is #4 overall, it’s gonna trade more today than in its first two wks combined.This is officially a craze.[pic.twitter.com/Wqez1rKrCg] [February 28, 2024]
On a scale of one to three, Balchunas puts the current craze in the ETF market at a two, highlighting that “ARK was the last full blown ETF mania” in his opinion, meaning a three.Nevertheless, the ETF expert acknowledges that the numbers are absurd and very rare.
Over the years I’ve developed unofficial terms for ETF sht, eg when there’s a grassroots explosion of activity and ETFs start to break loose like this, I start with frenzy, move on to craze, and last stop is mania, which is very rare.ARK was the last full blown ETF mania IMO.— Eric Balchunas (@EricBalchunas)
[February 28, 2024]
Overflows from the spot ETF are spilling into futures ETFs like BITX, BITO and BITI, as well as stocks like MicroStrategy (MSTR), according to Balchunas.
James Seyffart, another ETF specialist with Bloomberg weigned in, “The Bitcoin ETFs are absolutely demolishing their prior trading volume record from day 1.
We’re at $6.28 billion and there’s still 90 minutes left of trading.”
Ethereum ETF hopes grow
In January, Hester Pierce, one of the commissioners at the US Securities & Exchange Commission (SEC),
said that she hopes for a better approach toward possible spot ETH ETF.This was after an extensive back and forth between the regulatory body and the ETF issuers.
NEW: SEC Commissioner Hester Peirce tells me the SEC won’t repeat the same mistakes with ETH ETFs after fumbling Bitcoin ETFs:— Zack Guzmán (@zGuz)
“That’s not how we’re going to do our approvals …
I think that kind of a lesson will certainly stick with us.
[pic.twitter.com/QNu52Gmr3H] [January 23, 2024]
Specifically, Peirce hopes for “regular way considerations” to spot ETF products much like has been applied to other related products, without the need for court orders to deem the agency’s approach “arbitrary and capricious.” She had also articulated that spot BTC ETFs had met the requirements for approval much earlier and appreciated that people now have a cheaper and more efficient way of gaining access to BTC.
Cramer joins the likes of Valkyrie Fund CIO Steven McClurg, who
said an ETH ETF launch would be unsurprising.Ekta Mourya, a reporter at FXStreet, highlighted last week that the Ethereum ETF race has intensified..The report came after VanEck submitted a revised S-1A filing and ARK/21Shares filed a new 19b-4 for their Spot Ethereum ETFs.
The expected date for approval is May 2024 with a Bloomberg report from January 30 indicating that Standard Chartered is positive that the SEC will allow ETFs to hold Ether around that month (May).According to Standard Chartered, the asset managers will be the first to come up against the final deadline.Experts say to expect
Ethereum price to hit a peak of $4,000 by the expected approval date.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants.
Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network.This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods.The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins.
Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar.An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa.If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset.At consistent demand if the supply reduces, the asset’s price climbs.This has been observed in Bitcoin and Litecoin.
Information on these pages contains forward-looking statements that involve risks and uncertainties.Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.
You should do your own thorough research before making any investment decisions.FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.It also does not guarantee that this information is of a timely nature.Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress.
All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned.The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations.The author makes no representations as to the accuracy, completeness, or suitability of this information.FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Follow us on Telegram
Stay updated of all the news
Recommended Content
Editors’ Picks
Bitcoin price rally not likely over as institutions deplete BTC OTC supply
Bitcoin (BTC) price could cover more ground north as the BTC wells among over-the-counter (OTC) desks run dry.
This is likely to see institutions look to public exchanges, with the resulting buying pressure likely to provide tailwinds for the pioneer cryptocurrency.
More Bitcoin News
SEC approval of spot BTC ETFs was Bitcoin IPO, says expert
Bitcoin (BTC) price exploded to an intraday high of $64,000 on Wednesday before a quick retraction.
Reports circulated that over-the-counter (OTC) BTC supplies depleted, which could compel institutions to switch to public exchanges as an alternative source of Bitcoin.
More SEC News
Coinbase exchange notes progress amid ongoing downtime
Coinbase has issued an update concerning the crash, indicating, “We’re beginning to see improvement in customer trading.” However.The US-based exchange acknowledges that because of increased traffic, some customers may still see errors when trying to log in to their accounts or execute transactions, but holds, “Rest assured your funds are safe.”
More Coinbase News
Bitcoin shatters $63,000 as Jim Cramer posses a rhetoric on BTC value for mankind
Bitcoin (BTC) price has shattered past the $63,000 threshold, with the bulls not showing any signs of stopping.The upside potential remains alive, with BTC now eyeing $65,000.
More Bitcoin News
Bitcoin: BTC likely to correct to $50,000 soon
Bitcoin price has formed a potential top signal that forecasts a sell-off.The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook.
Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.
Read full analysis.
