{"id":15376,"date":"2024-07-20T11:05:48","date_gmt":"2024-07-20T08:05:48","guid":{"rendered":"https:\/\/forklog.com\/en\/eth-etf-launch-boosts-market-sentiment\/"},"modified":"2024-07-20T11:05:48","modified_gmt":"2024-07-20T08:05:48","slug":"eth-etf-launch-boosts-market-sentiment","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/eth-etf-launch-boosts-market-sentiment\/","title":{"rendered":"ETH-ETF Launch Boosts Market Sentiment"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>Bitcoin surpassed $66,000, while Ethereum reached $3,500 following the announcement of the start date for trading spot ETH-ETFs.<\/li>\n<li>Despite positive factors, the second-largest cryptocurrency by market capitalization faces a potential supply crisis.\u00a0<\/li>\n<\/ul>\n<\/div>\n<p>Following the <a href=\"https:\/\/www.cboe.com\/us\/equities\/notices\/new_listings\/details\/?etf=true&#038;firm_name=Franklin+Templeton&#038;first_trade_dt=2024-07-23&#038;ipo=true&#038;symbols=EZET\">confirmation<\/a> of the start date for trading spot Ethereum-ETFs on the <span data-descr=\"Chicago Board Options Exchange\" class=\"old_tooltip\">CBOE<\/span>, digital gold held steady above $66,000.\u00a0<\/p>\n<p>According to the exchange, the listing of the product from Franklin Templeton and four other instruments is scheduled for July 23. Previously, the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> approved applications for the launch of mini-ETFs based on Ethereum from Grayscale and an exchange-traded fund from ProShares.<\/p>\n<p>On the evening of July 19, the crypto market began to rise actively. Bitcoin tested the $67,000 level before correcting to $66,500. The asset rose by 4.5% over the day.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/docsz\/AD_4nXeZ-ou5hdWPvdPGJG2cxFtMq6YJbb_H3nF313sj3K8qwThcy3PwqPpQOqdndrb-gGG9OAD0A_TWnF1fPANfJc7Okfj8RNKjZoPYZAxyHU1Vc_yIi1QdS9NsMXRKFwM0QgXIK2JxhYgupdc-Xfilxdc6ueE?key=ljnAgkOLxq2YDylDM9iksw\" alt=\"ETH-ETF Launch Boosts Market Sentiment\"\/><figcaption class=\"wp-element-caption\">15-minute BTC\/USDT chart on Binance. Data: <a href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSDT\/\">TradingView<\/a>.\u00a0<\/figcaption><\/figure>\n<p>Ethereum was slightly weaker than the leading cryptocurrency. The coin gained 2.3% over 24 hours and is trading around $3,500 at the time of writing.\u00a0<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/docsz\/AD_4nXds3pnzQu4vptRgpTnUJB67oNqWgKq2h01lSwKnldSLMMZiuGB8tGIE617Mk3ZrCSncWwCyTeFtp-a0KuUAYIISBOZyTuxkyvpjmqWB0_a07_JfgjqXeNczl8YerbR_vTZzbHWsvES9jMbsmXhGeD0ULZU?key=ljnAgkOLxq2YDylDM9iksw\" alt=\"ETH-ETF Launch Boosts Market Sentiment\"\/><figcaption class=\"wp-element-caption\">15-minute ETH\/USDT chart on Binance. Data: <a href=\"https:\/\/www.tradingview.com\/symbols\/ETHUSDT\/\">TradingView<\/a>.\u00a0<\/figcaption><\/figure>\n<p>Other top-10 assets by market capitalization also entered the &#8220;green zone.&#8221; XRP saw the largest increase of the day, rising by 8.2%.\u00a0<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/docsz\/AD_4nXcch21zFD2lfVJRBMdFRq6x6ut6zdTIZduFyvTRxdCp2kDbCaxhx4PmtY4WaypqZ7DmJmSl_p5X26mqhJ-tB6rjXsdmegKvfSKwIs4lVHyJ3Xibjl0oJn7aGrdKRgO2hIh70KPn5JlE1eh7vyDp64ujnAh9?key=ljnAgkOLxq2YDylDM9iksw\" alt=\"ETH-ETF Launch Boosts Market Sentiment\"\/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/www.coingecko.com\/\">CoinGecko<\/a>.\u00a0<\/figcaption><\/figure>\n<p>According to <a href=\"https:\/\/www.coinglass.com\/LiquidationData\">Coinglass<\/a>, the volume of liquidations over the past day reached $149.3 million, with $96 million attributed to short positions.\u00a0<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/docsz\/AD_4nXdL-PNVUOFt3UwSDrSRXNUzILILYIXcGeG5gC6JJtoO6os4hoohYdWXOIcoaKxtiZa9cftGoIBYKdOuvOam8I0QjUdRaUXeVdbzbRkfElH6812gifV940PcASZd4WOWb_ASjAibL-wblqn8GmJ8cswD5d7l?key=ljnAgkOLxq2YDylDM9iksw\" alt=\"ETH-ETF Launch Boosts Market Sentiment\"\/><figcaption class=\"wp-element-caption\">Liquidation map. Data: Coinglass.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\"><strong>Risks for Ethereum<\/strong><\/h2>\n<p>Despite the positive factor of exchange-traded funds, the second-largest cryptocurrency by market capitalization may face a supply crisis.\u00a0<\/p>\n<p>According to analyst and Into The Cryptoverse founder Benjamin Cowen, Ethereum&#8217;s price risks declining if supply continues to grow at the current pace after the initial ETF excitement subsides.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">If the supply of <a href=\"https:\/\/twitter.com\/hashtag\/ETH?src=hash&#038;ref_src=twsrc%5Etfw\">#ETH<\/a> keeps increasing by ~60k\/month like it has been since April, then by Dec the supply will be back to what it was at the merge.<\/p>\n<p>Could be a narrative that people focus on later this year, when they should actually focus on monetary policy.<\/p>\n<p>Thread<\/p>\n<p>?<\/p>\n<p>\u2014 Benjamin Cowen (@intocryptoverse) <a href=\"https:\/\/twitter.com\/intocryptoverse\/status\/1814360169150652907?ref_src=twsrc%5Etfw\">July 19, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He claims that the number of new coins is growing by approximately 60,000 ETH every 30 days over four months. The Merge hard fork reduced the total supply by 455,000 ETH by April, but the figure could return to previous levels by December, the expert warned.\u00a0<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/docsz\/AD_4nXc0CEGAlbZ73efS0pXtNFyDc8P1y2aa8DHYqbCDfeAyJBqORNpSSJgbPaTrX14BlhoGnugK7RWaw9tZITcVOumGmDLNrgfnAbqDM7QcwggBul4OtR9mbBG3GOkxiwn8MIlUfT__vEbsy6dwPSmswR5-jKA?key=ljnAgkOLxq2YDylDM9iksw\" alt=\"ETH-ETF Launch Boosts Market Sentiment\"\/><figcaption class=\"wp-element-caption\">Ethereum supply growth. Data: X.\u00a0<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;If you ignore monetary policy because you think it doesn&#8217;t matter, you might consider 2016. The ETH\/BTC pair had a false breakout below the lows in Q2 2016, then real capitulation in Q4. Could we see the same this year?&#8221; Cowen suggested.\u00a0<\/p>\n<\/blockquote>\n<p>While the CEO of Into The Cryptoverse believes that by the end of 2025, the price of ETH will likely &#8220;be higher than it is now,&#8221; there is potential for a decline over the next &#8220;three to six months.&#8221;<\/p>\n<p>On July 16, analyst Leon Waidmann warned that Ethereum is facing a &#8220;supply crisis.&#8221;\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">?<a href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&#038;ref_src=twsrc%5Etfw\">#Ethereum<\/a> Supply Crisis Looming!?<\/p>\n<p>Exchange balances down to 10.2% while 39.3% of <a href=\"https:\/\/twitter.com\/hashtag\/ETH?src=hash&#038;ref_src=twsrc%5Etfw\">#ETH<\/a> is locked in smart contracts.<\/p>\n<p>Most investors still don&#8217;t realize how tight the ETH supply side is and how big the effect of the ETF will be! <a href=\"https:\/\/t.co\/uED4DFx5C6\">pic.twitter.com\/uED4DFx5C6<\/a><\/p>\n<p>\u2014 Leon Waidmann | Onchain Insights? (@LeonWaidmann) <a href=\"https:\/\/twitter.com\/LeonWaidmann\/status\/1813102955874382043?ref_src=twsrc%5Etfw\">July 16, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Exchange balances [in ETH] have fallen to 10.2%, while 39.3% of assets are locked in smart contracts. Most investors still don&#8217;t realize how tight the coin&#8217;s supply is and how significant the ETF&#8217;s effect will be,&#8221; he stated.<\/p>\n<\/blockquote>\n<p>QCP Capital predicted that ether could rise to $4,800 following the approval of ETH-ETFs. Experts believe that demand amounting to 10-20% of the inflow into bitcoin funds will trigger a positive movement.\u00a0<\/p>\n<p>In July, Binance CEO Richard Teng stated that the products will ensure a stable and significant capital inflow, but only over time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin surpassed $66,000, while Ethereum reached $3,500 following the announcement of the start date for trading spot ETH-ETFs. Despite positive factors, the second-largest cryptocurrency by market capitalization faces a potential supply crisis.\u00a0 Following the confirmation of the start date for trading spot Ethereum-ETFs on the CBOE, digital gold held steady above $66,000.\u00a0 According to the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15375,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,569,46,1145,1150],"class_list":["post-15376","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-etf","tag-ethereum","tag-market-analysis","tag-news-plus"],"aioseo_notices":[],"amp_enabled":true,"views":"12","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/15376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=15376"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/15376\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/15375"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=15376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=15376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=15376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}