Ethereum (ETH) Hits A New All-Time High of $4650, Ethereum Futures ETF Might Come Soon

03. Nov 2021 Posted by Akolkar B on News

The world's second-largest cryptocurrency advances by gaining a new all-time high and peaked at $4650. On Wednesday, November 3, the ETH price gained another 10% entering into a new price discovery zone. 

The upward bullish movement accelerated its market capitalization by 6.38% to $543 billion, with the daily trading volume growing to $21.2 billion. With this, Ethereum also overtakes the world’s largest banking institution and American multinational JPMorgan. Seeing this recent trend pattern, Goldman Sachs suggests that ETH is either becoming exhausted or is reaching a "starting point of an accelerating rally." 

Nevertheless, Goldman alerted that central banks will not let inflation keep climbing sharply. If ETH proceeds to match inflation expectations, there will likely be a rally followed by a "longer-term market top ahead."

The world’s second-largest cryptocurrency Ethereum has outperformed Bitcoin throughout 2021. As it hits new record highs, many analysts call it the beginning of the new bull cycle and expect the ETH price to hit $10K by the end of the year.

At the same time, the market demand for Ethereum Futures ETF tends to grow simultaneously. According to Bloomberg Intelligence, the U.S. The Securities and Exchange Commission is more inclined to allow an Ethereum futures-based ETF before the approval of the spot Bitcoin ETF next year in 2022. . However, Bloomberg analysts predict that the Ethereum futures exchange-traded fund could be approved as early as the first quarter of 2022.

In a note on Tuesday, James Seyffart, analyst at Bloomberg Intelligence, wrote: “Most market participants agree that a spot Bitcoin ETF would be superior to existing futures ETFs, yet SEC approval of the former may be delayed until late 2022 or beyond. Though a spot Bitcoin ETF is possible in 2022, SEC approval may take longer due to concerns about regulation in the underlying Bitcoin market”.

In another major announcement, the CME Group announced that it will be launching the micro Ether futures next month on December 6. The Micro Ether futures from CME will be the size one-tenth that of Ether and will provide an efficient and cost-effective way for individual traders to participate in the Ether derivatives market.

The Micro Ether Futures will be completely cash-settled and tracking the CME CF Ether-Dollar Reference Rate. Speaking of the development, Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products said: "Since the launch of Ether futures in February, we have seen steady growth in liquidity in these contracts, especially among institutional traders. At the same time, the price of ether has more than doubled since these contracts were introduced, creating demand for a micro-sized contract to make this market even more accessible to a broader range of participants. Micro Ether futures will offer even more choice and precision in how they trade Ether futures in a transparent, regulated and efficient manner at CME Group."