Based on the robust open interest in Ethereum futures on CME, K33 Research predicts that a spot Ethereum ETF may draw significant demand from institutions. ETH pricing is probably going to beat Bitcoin’s.
The SEC’s decision to approve spot Ethereum ETF S-1 registrations is now the focus of attention since it has the potential to spark a larger market rise. A new research from K33 Research suggests that Ethereum may face a supply shock, with about 1.26 million ETH possibly leaving exchanges in the five months following the ETF’s introduction. The price of Ether (ETH) may rise sharply as a result of this change, possibly reaching a new record high.
Spot Ethereum ETFs to see $4B in inflows
Within the first five months of their inception, spot Ethereum ETFs may attract an incredible $4 billion in inflows, according to K33 Research. Based on a comparison between comparable Bitcoin (BTC) products and the assets under management (AUM) of currently available Ethereum (ETH)-based exchange-traded products globally, K33 Research made its prediction. The open interest (OI) in futures contracts on the Chicago Mercantile Exchange (CME), a significant venue for institutional investors, was also examined by them.
Right now, 23% of the amount of Bitcoin futures is represented by Ether’s open interest (OI) on the CME market. But since ETH futures began trading on CME in 2021, they have taken a 35% market share from BTC futures, suggesting that institutional demand for ETH has been quite high.
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K33 Research estimates that within the first five months of debut, the spot Ether ETFs may witness inflows ranging from $3 billion to $4.8 billion when comparing these ratios with the $14 billion in inflows for the Bitcoin ETFs.
Given the current price of $3,800 for ETH, this may indicate that between 800,000 and 1.26 million ETH will be accumulated via ETFs. This represents between 0.7% and 1.05% of all ETH in circulation.
ETH to outperform Bitcoin
The price of Bitcoin surged by 60% to all-time highs shortly after the spot ETF was approved. After nearly two years of underperformance, Ethereum is expected to beat BTC if the Ethereum ETFs are made available for trade, according to K33 Research.
More significantly, it stated in its research study that the withdrawal of the staking function from exchange-traded funds (ETFs) will not have a detrimental effect on the inflows into the investment vehicle. According to K33, 98% of assets under management in European products are held in funds that do not need staking, compared to 99% in Canadian ETH ETFs.
Ripple CEO predicts XRP ETF launch by 2025 amid growing crypto market interest
In a recent interview with FOX Business’s The Claman Countdown, Ripple CEO Brad Garlinghouse predicted the release of an XRP exchange-traded fund (ETF) by 2025 and voiced great optimism about the product’s future.
Ripple CEO sees crypto ETFs as natural market progression
Garlinghouse made news last week when he declared that exchange-traded funds (ETFs) for a number of cryptocurrencies, including as Cardano (ADA) and Solana (SOL), are imminent. He compared the market to conventional commodities, highlighting its inevitable move towards greater exposure.
“So, if you have exposure to gold, you might want exposure to silver, […] and so to me, it only makes sense,” Garlinghouse explained.
Garlinghouse conceded that there might be difficulties when questioned about the possible obstacles posed by the US Securities and Exchange Commission (SEC). Still, he maintained his optimism. Garlinghouse brought attention to the SEC’s contradictory attitude to Ethereum, underscoring its inconsistent stance.
“I think it’s a hard argument with them to win. […] They’ve made life difficult for a lot of people, then they’ve lost in court,” he said.
Garlinghouse thinks that despite regulatory obstacles, the regulatory landscape is improving. However, he pointed out that other nations have more advanced regulatory frameworks than the US, including the UK, Japan, Singapore, and Switzerland.
Garlinghouse also discussed how politics are affecting the cryptocurrency industry. He made the observation that there has been a noticeable change in the level of attention from political leaders, including Trump’s campaign.
“This is a topic that has a lot of passionate people, and this is an excitement and enthusiasm that are pro-innovation, pro-these technologies, and know that they can be used in ways to protect consumers all at the same time. I think it’s crazy that it ever became a partisan issue, but I think that the Republicans are being very strategic in how they’re approaching that. And I think it’s becoming an election issue, which I think is good for the industry. And thus, I think it’s driving some momentum in the market,” Garlinghouse opined.
However, analysts believe that XRP may need to be accessible in its futures equivalent before it can be purchased as a spot ETF. Based on trust in the Chicago Mercantile Exchange’s (CME) Bitcoin futures market’s capacity to offer supervision against fraud and market manipulation, regulatory permission for spot Bitcoin ETFs was given. Thus, XRP gaining a futures ETF is a positive step toward eventually obtaining a spot ETF.
PEPE price targets another ATH in June 2024 as $3B signal emerges
Tuesday, June 4, 2024 saw the price of PEPE reach support around $0.000014. After falling 17% from the most recent all-time high, which was set on May 27, important on-chain insights indicate that the corrective period may be coming to an end.
Price dips 17% amid profit-taking frenzy
A well-known memecoin initiative running on the Ethereum network is called PEPE. PEPE pricing led the way in the cryptocurrency markets in May 2024, finishing the month with an incredible 151% growth rate.
As PEPE’s market value skyrocketed past $6 billion, it also moved up more than ten spots to reach the top 20 ranks, according to CoinMarketCap rankings.
The second straight all-time high for PEPE in as many weeks was the worldwide top of $0.0000172, which was reached on May 27. As anticipated, however, speculators quickly went into a profit-taking frenzy when the PEPE price produced that double-top, which has already spilled over into June.
The price of PEPE raced to a blazing 204.40% gain between May 1 and May 27, reaching an all-time high of $0.0000172, as seen by the blue shaded region in the above chart.
However, after the profit-taking wave began, the price of PEPE has dropped 19.27% from its peak last month, plunging as of this writing on June 5 to the $0.00000145 level.
Bulls cut trading by $3.1B, holding out for June rally
Looking behind the price charts, though, a significant pattern seen this week in the PEPE markets points to the possibility that the bottom is about to arrive.
PEPE sells seem to be growing weary after a 19% fall over the previous week, which may give bulls leeway to launch another surge in June 2024.
The Santiment figure below, which shows the dollar amount of all cryptocurrency transactions on a particular day, provides a clear indicator of this.
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Changes in trading volume reveal information about the volume of trades being made as well as the attitude of investors regarding the present PEPE price movement.
On May 23, when prices surged to a global record, PEPE market activity reached a height of $4.32 billion. On the other hand, as the price started to plummet, the blue trend line illustrates how the PEPE trading volume experienced a sharp downturn.
PEPE 24-hour trade volume was barely $1.27 billion at the time of writing on June 5, a staggering $3.1 billion decrease.
Notably, this also demonstrates that, despite the PEPE price’s 19% reduction from the market peak last month, the trading volume has seen a more notable 72% decline.
During a correction phase, strategic investors view a fall in trading volume quicker than the price dip as an early indication of an impending positive turnaround.
First off, if prices continue to drop, sellers may become less and less ready to sell if volume declines more quickly than price.
In a broader context, this might mean that the majority of PEPE traders who desired to record profits had already made their top-level sales. Additionally, the selling pressure is clearly waning as the market may be nearing a bottom, as shown by the $3 billion drop in trading volumes over the last ten days.
PEPE price forecast: bull to take charge from $0.000014
Based on the $3 billion drop in trading volume, the price of PEPE appears to be poised for a positive reversal from the support level of $0.000014.
According to the technical indications in the chart below, PEPE price is currently getting close to a crucial support area at the 20-day Simple Moving Average (SMA) price level at $0.0000138, following a 19% loss in the previous 10 days.
As PEPE approaches the 20% mark in its retracement from its all-time highs, bulls who have been holding onto their positions may think now is the ideal opportunity to add to their holdings.
The present all-time high at $0.00017 continues to be the primary short-term resistance cluster to overcome if PEPE price, as expected, begins to rise again in 2024. In June 2024, it may reach new highs over $0.000020 if the bulls are able to muster enough impetus.
However, it might lose the crucial support level of $0.000014 and drop as low as the 50-day SMA at $0.0000010 if the negative trend picks up speed.