The cryptocurrency universe is growing increasingly enthusiastic regarding the possibility that the SEC will soon approve a spot bitcoin ETF. But market participants shouldn’t take their eyes off ethereum.
Ethereum is the digital platform for transactions conducted in ether, the second-largest digital currency behind bitcoin. Alone, that status makes ethereum worth watching, if not investing in. Regarding the latter point, a slew of recently launched U.S.-listed ETFs make that process easier. That group includes the VanEck Ethereum Strategy ETF (EFUT).
The actively listed EFUT “offers exposure to ether-linked investments through an accessible exchange traded vehicle. The Fund does not invest in ether or other digital assets directly,” according to VanEck. Some interesting signs are pointing to near-term upside for ethereum, potentially signaling that EFUT is a new ETF for risk-tolerant investors to consider.
Ethereum Whale Watching
A favorite pastime of some experienced crypto investors is monitoring “whale” activity in some of the more broadly tracked, liquid digital currencies; namely, bitcoin and ether. In simple terms, whales are sizable owners of these cryptocurrenices, and their buy and sell orders can affect pricing.
EFUT could receive a spark from ether whales because data indicates that cohort of market participants has recently been active.
“Indeed, Ethereum whale transactions, specifically those above $100,000, have skyrocketed to a six-month high, while the supply of ETH on exchanges has hit a record low since its genesis in 2015, according to the data shared by blockchain analytics platform Santiment on October 25,” reported Ana Zirojevic for Finbold.
Increased activity among large traders could very well be one reason ether is higher by more than 14% over the past week. As Finbold noted, there were nearly 6,050 ethereum trades worth at least $100,000 on Tuesday, representing the biggest day by that metric in six months.
Potentially adding to the case for EFUT is that point that the recent uptick in sizable activity in ethereum isn’t a one-off contained to this digital currency. Rather, it’s occurring across other major cryptocurrencies as well.
“At the same time, Bitcoin (BTC), Cardano (ADA), and Dai (DAI) are witnessing massive increases in whale activity themselves, with Bitcoin recording 14,833 of $100,000+ transactions on October 24, the most since June’s news of the multiple filings for a spot Bitcoin exchange-traded fund (ETF), according to the blockchain platform’s analysis,” observed Finbold.
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