- Investors are piling into bets that pay off if Ethereum reaches $5,000 this month.
- But that’s not the only clue as to when spot Ethereum ETFs will launch.
The Securities and Exchange Commission sent cryptocurrencies soaring last month when it approved spot Ethereum exchange traded funds.
While it’s not yet clear when everyday investors can buy them, options traders, bettors and analysts offer clues.
Traders poured nearly $240 million into bets that Ethereum will reach an all-time high of $5,000 before the June 28 expiry.
“This positioning is being driven by traders front-running the launch of spot ETH ETFs,” Jake Ostrovskis, OTC Trader at Wintermute, told DL News.
In total, option traders have placed some $3.6 billion trades that expire on June 28, signalling a surge in traders buying calls — or bullish bets — that Ethereum will exceed $4,000.
A bet on blockchain-betting site Polymarket puts the odds at 60% that spot Ethereum ETFs will start to trade before July 4.
Bloomberg Intelligence analyst Eric Balchunas says an end of June launch is a “legit possibility,” but that investors should expect a launch around July 4.
Elsewhere, JPMorgan analysts suggest that spot Ethereum ETFs will start to trade around July and August ahead of the US election as crypto becomes a political issue.
“The general market consensus is that these ETFs will be launched sooner rather than later,” Jamie Sly, communications manager at crypto data firm CCData, told DL News.
Ethereum has surged some 30% since its May low to $3,763 on the back of the regulatory nod for spot Ethereum ETFs.
While the SEC has not yet approved the sale of the ETFs, market watchers expect the ETF launch to catapult the cryptocurrency past its November 2021 record of $4,878.
Jacob Joseph, research analyst at cryptocurrency data firm CCData, told DL News that spot Ethereum ETFs will likely see inflows of $3.9 billion within the first 100 days.
Kaiko analyst Adam McCarthy cautioned that a comparison with the launch of ETFs in Hong Kong paint a less optimistic outcome. Those “didn’t see much demand, and have had mixed days with several net outflow days already.”
Crypto market movers
- Bitcoin is down 0.4% over the past 24 hours to trade at $68,940.
- Ethereum is down 1.4% to $3,763.
What we are reading
- Ethereum to $5,000? Nine experts on how the ETF approval will impact prices — DL News.
- Thailand Approves First Spot Bitcoin ETF, Joining Global Trend — Milk Road
- 455,000 Tokens Launched on Solana in May: Report — Unchained.
- Judge Orders SEC To Pay $1.8 Million In Legal Fees, Dismisses Case Against Debt Box — Milk Road.
- Why Congress is about to take an interest in tokenisation’s $16tn promise — DL News.
Eric Johansson is DL News’ News Editor. Got a tip? Email at eric@dlnews.com.
