{"id":332002,"date":"2024-06-27T03:24:55","date_gmt":"2024-06-26T21:54:55","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=332002"},"modified":"2024-06-27T03:24:55","modified_gmt":"2024-06-26T21:54:55","slug":"blofin-believes-spot-ethereum-etfs-will-drive-short-term-surge-in-eth-prices-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/blofin-believes-spot-ethereum-etfs-will-drive-short-term-surge-in-eth-prices-crypto-news\/","title":{"rendered":"BloFin believes spot Ethereum ETFs will drive short-term surge in ETH prices – Crypto News"},"content":{"rendered":"
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Crypto exchange BloFin<\/a> believes the imminent launch of spot Ethereum<\/a> exchange-traded funds (ETFs) in the US will drive a short-term surge in ETH prices as investors shift their attention from Bitcoin to the second-largest crypto asset by market capitalization, according to\u00a0a June 26 research note shared with CryptoSlate<\/em>.<\/p>\n

The exchange, citing various data points such as options skewness, portfolio adjustments, and whale holdings, noted that the ETFs\u2019 launch would likely boost Ethereum\u2019s short-term price.<\/p>\n

BloFin analysts said:<\/p>\n

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\u201cThe relative strength of BTC has lasted for several months, but investors are changing their views: they seem to believe that the performance of ETH will strengthen for some time with the listing of the spot ETH ETFs.\u201d<\/p>\n<\/blockquote>\n

Last month, the US Securities and Exchange Commission (SEC) approved<\/a> key filings for spot ETH ETFs, surprising many market participants. Since then, the ETH ETF applicants have been engaging with the regulator\u2019s staff<\/a>, and there are rumors that these financial instruments could start trading as early as the first week of July<\/a>.<\/p>\n

Bullish ETH expectations<\/h2>\n

BloFin observed that Bitcoin\u2019s skewness data had been more bullish than Ethereum\u2019s for the majority of this year. However, the trend has reversed in recent weeks, with investors\u2019 short-term expectations for Bitcoin now \u201cneutral\u201d and \u201cslightly bearish,\u201d<\/a> while expectations for Ethereum are more bullish<\/a>.<\/p>\n

Although investors remain bullish on Bitcoin\u2019s medium and long-term performance, their optimism for Ethereum has surpassed that of the top crypto in the shorter time frames.<\/p>\n

The analysts explained that one of the reasons driving this change is the potential for higher returns. According to the note:<\/p>\n

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\u201cAssets with relatively low market cap and relatively high volatility have a better potential for returns during the interest rate cut cycle.\u201d<\/p>\n<\/blockquote>\n

BloFin also anticipates that the \u201casset allocation period\u201d following the approval of spot Ethereum ETFs will positively impact ETH\u2019s price, similar to Bitcoin\u2019s experience<\/a> in February and March.<\/p>\n

Additionally, the latest forward exchange rate term structure of ETH\/BTC<\/a> suggests that investors believe ETH will outperform BTC in the coming months, pushing the exchange rate higher in the short term.<\/p>\n

According to the analysts:<\/p>\n

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\u201cThe Risk Premium difference between ETH and BTC has also converged to within 25[basis points], and investors are looking forward to the potential new wealth effect brought by ETH after the listing of spot ETH ETFs.\u201d<\/p>\n<\/blockquote>\n

BloFin highlighted that on-chain data further supports its bullish outlook. According to the firm, ETH whales have stopped selling their holdings, while BTC whales continue to reduce theirs<\/a>.<\/p>\n

The firm noted that this might be due to miners regularly selling BTC for cash<\/a>, but it could also indicate investors readjusting their portfolios.<\/p>\n

Mentioned in this article<\/h6>\n
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Latest Alpha<\/span> Market Report<\/h6>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Crypto exchange BloFin believes the imminent launch of spot Ethereum exchange-traded funds (ETFs) in the US will drive a short-term surge in ETH prices as investors shift their attention from Bitcoin to the second-largest crypto asset by market capitalization, according to\u00a0a June 26 research note shared with CryptoSlate. The exchange, citing various data points such […]<\/p>\n","protected":false},"author":2,"featured_media":331869,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-332002","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/332002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=332002"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/332002\/revisions"}],"predecessor-version":[{"id":332009,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/332002\/revisions\/332009"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/331869"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=332002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=332002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=332002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}