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Tag: Ethereum spot ETFs

  • Demand For XRP On CME Explodes As Reports Show Over $18 Billion

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    Demand for XRP on the CME derivatives exchange continues to rise, providing a bullish outlook for the altcoin. This comes ahead of the potential approval of the XRP ETFs, which could further spark institutional demand for XRP. 

    CME XRP Futures Hit New Milestone

    In an X post, the CME group announced that it has hit its four-month milestone for XRP futures, with a notional trading volume of $18.3 billion, 6 billion XRP traded, and 397,000 contracts traded. This again highlights the demand for the altcoin, with the derivatives exchange previously stating that the altcoin’s futures products have shown demand from both institutional and retail participants. 

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    Notably, the CME XRP futures crossed $1 billion in open interest (OI) last month, with the altcoin becoming the fastest-ever contract to do so, having hit the mark in just three months. 

    Amid the demand for the altcoin on the derivatives exchange, CME has announced plans to launch options trading on the XRP futures on October 13. 

    This is expected to further boost the demand on the CME exchange, which is a positive for the altcoin. This new milestone for XRP futures comes just ahead of the potential launch of XRP ETFs under the 33 Act, which will also elevate institutional interest in the altcoin. Fund issuers are expected to file amendments for their respective funds as soon as the end of this week. 

    This comes amid the SEC’s approval of the generic listing standards, which could enable these XRP ETFs to launch earlier. If that doesn’t happen, the focus will shift to Grayscale’s October 18 deadline, which is the first final deadline among all seven XRP filings. The commission could approve these funds simultaneously, just as it did with the Bitcoin and Ethereum ETFs. 

    Massive Demand Expected For The ETFs

    It is worth mentioning that market expert Nate Geraci had previously alluded to the success of the CME XRP futures as one of the reasons he believes people are underestimating the demand the spot XRP ETFs may record. He also noted at the time that there was already over $800 million in futures-based XRP ETFs. 

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    In another X post, Geraci doubled down on his statement that people are “severely” underestimating the investor demand for the spot XRP ETFs. He noted how a similar thing happened with the spot Bitcoin and Ethereum ETFs, which have so far exceeded expectations. 

    Canary Capital CEO Steven McClurg also has high expectations for the XRP ETFs, predicting that they could record up to $5 billion in inflows in their first month. He also believes that they could outperform the Ethereum ETFs in the process. 

    At the time of writing, the altcoin price is trading at around $2.75, down over 3% in the last 24 hours, according to data from CoinMarketCap.

    XRP trading at $2.76 on the 1D chart | Source: XRPUSDT on Tradingview.com

    Featured image from iStock, chart from Tradingview.com

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    Scott Matherson

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  • Ethereum ETFs Launch About To Kickstart The Altseason?

    Ethereum ETFs Launch About To Kickstart The Altseason?

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    The long-awaited Ethereum Exchange-Traded Funds (ETFs) are finally live, registering over $100 million in volume in the first 15 minutes. Investors expect to see the launch’s impact on the crypto market, while some market watchers believe ETH ETF’s performance will kickstart the Altcoin season.

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    Ethereum Spot ETFs Are Officially Live

    On Monday, the US Securities and Exchange Commission (SEC) gave the final nod to Ethereum spot ETFs, setting the launch date for Tuesday, July 23. After the approval, investors raised the alarm following some online reports.

    Per Whale Alert, Grayscale has transferred $1 billion in ETH to Coinbase Institutional. This led many investors to fear that the digital asset manager’s transaction would add selling pressure to the asset and affect its price performance ahead of the launch.

    However, ETF expert Eric Balchunas offered some relief to investors after pointing out that Grayscale didn’t move the tokens to dump them. The firm transferred the 292,262 Ethereum “from $ETHE to its mini-me = $ETH.” Balchunas considers it “a new variable in this race that we didn’t have in the btc race.”

    The initial numbers have been released now that the highly anticipated products are live. Balchunas shared on X that the Ethereum ETFs saw $112 million in the first 15 minutes of trading. This number increased to $361 million total after 90 minutes.

    ETH ETFs’ initial volume after 90 minutes. Source: Eric Balchunas on X

    The Bloomberg expert praised the volume, calling it a “solid showing” regardless of being 20-25% of Bitcoin (BTC) ETFs numbers. Despite the healthy performance, ETH remains hovering between the $3,440 and $3,540 price range.

    Are ETH And Altcoins About To Take Off?

    Ahead of the launch, some market watchers anticipated that the ETFs’ performance could kickstart an upswing for Altcoins. According to several analysts, the Altcoins chart shows similarities to the 2016-2017 performance, suggesting that the Altseason is “brewing.”

    To Crypto Jelle, “Altcoins are still following the traditional bull market preparation playbook.” Per the macro chart, altcoins broke from the accumulation zone and chopped around key support levels during previous cycles.

    Ethereum
    ETH’s chart shows similarities to previous bull runs. Source: Crypto Jelle on X

    The “pre-bull market consolidation” was followed by a take-off that propelled cryptocurrency prices to new highs. Jelle pointed out altcoins are currently in the consolidation zone, similar to past cycles. He also suggested a new take-off “shouldn’t take long” after Ethereum ETFs’ launch.

    Crypto trader MikyBull also highlighted the similarities between the previous cycles, which suggest that a “huge Altseason is brewing.” To the trader, the recent “fake out” made investors believe that this cycle’s Altseason “has been written off,” but he expects altcoins to “pull a 2017 kind of explosive” rally that follows the same PA path.

    The trader considers Ethereum’s price might be positively affected by ETH spot ETFs. This performance will be the primary driver for the “huge rally in the coming months.” Additionally, he set a band price target of $10,000 for ETH.

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    Other market watchers suggested that investors must remain serene if a price drop occurs. Pseudonym analyst and trader Moustache called for patience as “it’s only a matter of time.” “Ethereum chart looks like it did in the last cycle, just before the Altcoin bull market started,” he added.

    As of this writing, the second-largest cryptocurrency by market capitalization is trading at $3,419, a 1.1% decline in the last 24 hours.

    Ethereum, ETH, ETHUSDT, ETH ETFs
    Ethereum’s performance in the three-day chart. Source: ETHUSDT on TradingView

    Featured Image from Unsplash.com, Chart from TradingView.com

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    Rubmar Garcia

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