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Author: Shaurya Malwa, CoinDesk; Compiled by: Deng Tong, Bitchain Vision
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The U.S. approval of spot Ethereum Exchange Trading Funds (ETFs) could lead to a sharp increase in token value, reflecting the market response of Bitcoin ETFs.
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Within two weeks after the Bitcoin ETF began trading, the price of Bitcoin rose from $42,000 to more than $73,000.
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After the decision of Ethereum ETF is made, there will be a lot of buying activity on centralized exchanges and blockchain-based exchanges.
QCP Capital said on Telegram on Thursday thatThe U.S. approved a spot Ethereum (ETH) exchange-traded fund (ETF), which could drive the second-largest cryptocurrency to rise by 60% in the coming months.
The Singapore-based company said the forecast echoes the market response after the spot Bitcoin ETF was approved in January.Data from CoinGecko shows that Bitcoin rose from $42,000 to more than $73,000 in the two weeks after the ETF began trading on January 11.
“The implied volatility was over 100% on Friday and the market is looking forward to ETFs,” QCP said.
Implicit volatility measures market expectations for future price fluctuations in financial instruments.
On-chain analytics firm CryptoQuant said in a report Wednesday that there has been an increase in purchasing activity on centralized and blockchain-based cryptocurrency exchanges.On Tuesday, holders purchased more than 100,000 ETHs in the spot market as reports of favorable decisions emerged, the highest single-day level since September 2023, with some analysts increasing their purchase probability from 25% to over 75%.
On Wednesday, Ethereum holder inflows exceeded 100,000 mark, the highest daily traffic since September.(CryptoQuant)
Ethereum’s open interest in tracking futures surged to a record $14 billion.As of Wednesday, this proportion accounted for 67% of Bitcoin open contracts, an unusually high level.
Trading activity on the Chicago Mercantile Exchange, which is favored by institutions, also increased, with nominal trading volume of Ethereum futures hitting a record $2.85 billion on Tuesday, a spokesperson said.Ethereum options trading volume reached a record 1,135 contracts ($216 million).
“Traders now seem to be investing more in ETH relative to Bitcoin,” CryptoQuant said.
Ethereum prices may fluctuate in the coming days after investors sent 62,000 ETH to the exchange, the report said.“High exchange rate flows are often associated with price fluctuations.”
