The Crypto Market Turns Bullish as ETF Hype Grows
The crypto market experienced a bullish turn on Thursday as traders took advantage of the increasing excitement surrounding exchange-traded funds (ETFs). Ethereum, the second-largest cryptocurrency, saw its price rise above the $1,600 support level and climb towards $1,700, although it stalled at $1,670. On Friday, Ethereum is up 3% to $1,648 with a trading volume of $12.2 billion.
Valkyrie’s Application Approved for Ethereum Futures Exposure
Valkyrie, an alternative asset management company that focuses on the intersection of the cryptocurrency market and traditional finance, has received approval to seek exposure to Ether futures contracts within its Bitcoin futures ETF product. This makes Valkyrie the first US ETF to offer exposure to both Ether and Bitcoin futures contracts. The company beat other investment firms by updating its prospectus and risk disclosures related to Ether futures. Starting October 3, Valkyrie will offer both futures contracts in one ETF product named Valkyrie Bitcoin and Ether Strategy ETF.
VanEck Confirms Launch of Ethereum Strategy ETF
VanEck, another asset management firm, has confirmed the imminent launch of its VanEck Ethereum Strategy ETF (EFUT). The fund will invest in standardized, cash-settled ETH futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC). The actively managed fund’s shares will trade on the Chicago Board Options Exchange (CBOE), although the exact listing date has not been announced yet.
Ethereum Price Flaunts Impending Cup and Handle Breakout
Ethereum price has experienced volatility in September due to seller congestion between $1,650 and $1,710. However, the futures ETF-driven rebound has pushed the price above $1,600, confirming it as a short-term support level. A cup and handle pattern has formed since the beginning of September, and a breakout is expected to propel Ethereum to $1,785. To achieve this target, bulls need to overcome resistance at $1,670. The bullish outlook from the Moving Average Convergence Divergence (MACD) indicator suggests that buyers have the upper hand.
Hot Take: Crypto Market Gains Momentum with ETF Approvals
The recent approvals for ETFs offering exposure to Ethereum futures contracts have injected new momentum into the crypto market. With Valkyrie becoming the first US ETF to provide exposure to both Ether and Bitcoin futures contracts, and VanEck preparing to launch its Ethereum Strategy ETF, investors now have more options for diversifying their cryptocurrency portfolios. These developments indicate growing acceptance of cryptocurrencies in traditional finance and could lead to increased mainstream adoption. As the market turns bullish and new investment opportunities emerge, it’s an exciting time for crypto enthusiasts.
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