Institutions to invest in Spot ETH ETFs, Confident in Good Fundamentals -

VanEck analysts have raised their price estimate for Ethereum to 22,000 USD by the year 2030, driven by the recent establishment of Spot Ethereum ETFs. This development allows stock market investors to access cryptocurrency investments through ETFs. Additionally, the continuous growth of Ethereum’s on-chain usage supports this optimistic forecast.

K33 Research estimates that the Spot Ethereum ETF in the U.S. stock market could attract a net inflow of 3.1 billion USD to 4.8 billion USD within the first five months of trading. This projection is based on comparisons to the initial market size of Bitcoin when its first spot ETF was introduced.

According to a report from CCData, cryptocurrency trading volume on centralized exchanges (CEX) decreased by 20% in May. However, ETH futures trading volume surged significantly after the U.S. SEC approved the Spot Ethereum ETF. Trading volume on CME’s derivatives market has increased by 37.5%, the highest since November 2021, while options trading volume soared by 115% to approximately 931 million USD.

Blackrock’s iShares Bitcoin Trust (IBIT) now holds 302,534 BTC in assets under management (AUM) just five months after trading began. This surpasses the AUM of Grayscale’s Bitcoin Trust ETF (GBTC). Overall, spot ETFs in the U.S. stock market hold a total of 883,000 BTC, valued at 63 billion USD, representing 4.2% of Bitcoin’s total supply.

The total value locked (TVL) in decentralized finance (DeFi) reached 192 billion USD in May, the highest since February 2022. Despite the increase in TVL, the number of unique active wallets (UAW) in DeFi decreased by 21%. Ethereum leads the DeFi space with a 68% share, followed by Solana in second place.

Jenny Johnson, CEO of Franklin Templeton, believes that institutional investment in Bitcoin is still in its early stages, with significant capital from large financial institutions yet to fully enter the cryptocurrency market. Currently, institutional investors are gaining confidence in Bitcoin.

Franklin Templeton is contemplating the creation of exchange traded funds for tokens other than Bitcoin and Ethereum, potentially offering returns from staking as part of the fund’s yield. The company currently manages spot ETFs for both Bitcoin and Ethereum.

Weekly Technical Analysis: 11 – 17 June 2024

Bitcoin (BTC)

Bitcoin (BTC) remains in a slight uptrend, despite not breaking the 72,000 USD resistance level. However, it hasn’t hit a new low either, suggesting indecision as the market awaits clarity on monetary policy this Wednesday. Support is at 65,000 USD. If BTC breaks the 72,000 USD resistance, it will likely test the previous high of 74,000 USD.

Support: 2,440,000 THB / 65,000 USD
Resistance: 2,640,000 THB / 74,000 USD

Ethereum (ETH)

Ethereum (ETH) is moving sideways as the approval of the Spot Ethereum ETF remains pending, and is expected to take some time. The trading strategy should be focused on buying and selling within a price range. Support is at 3,500 USD, with a target resistance at 4,000 USD.

Support: 130,000 THB / 3,500 USD
Resistance: 145,000 THB / 4,000 USD

Stacks (STX)

Stacks (STX) climbed 18.63% over the past week, continuing an uptrend. The dip in price presents a buying opportunity, with initial support at 1.80 USD. If the price holds above this level, short-term profit-taking could occur at the previous high of 2.60 USD. If it falls below this level, a stop-loss should be considered.

Support: 78 THB / 1.80 USD
Resistance: 92 THB / 2.60 USD

Binance (BNB)

Binance Coin (BNB) rose by 9.33% last week, reaching a new high before pulling back. The buyable support level is at 630 USD, with a short-term profit target at the previous resistance of 720 USD. The overall trend remains strongly bullish.

Support: 22,800 THB / 630 USD
Resistance: 26,400 THB / 720 USD

Trading and Investment Considerations For The Week

The US non-farm payroll numbers were higher than expected, while the unemployment rate has increased slightly. This led to a strengthening of the US dollar, causing Bitcoin to undergo a correction. However, the technical outlook for Bitcoin remains relatively stable.

Key highlights for this week include the release of the May Consumer Price Index (CPI) on Wednesday, which is expected to be 3.5%, down from 3.6% previously. Additionally, the Federal Reserve’s monetary policy results will be announced. Although the market anticipates no change in interest rates, a drop in inflation could lead some committee members to favor rate cuts, which may benefit the market.

Positive factors for the cryptocurrency market include 15.62 billion USD accumulated inflows into Spot Bitcoin ETFs (as of June 10, 2024), supporting Bitcoin prices. While the Total3 index, representing altcoin prices, has declined, the overall trend remains positive, suggesting a potential altcoin season.

Major altcoins with large market caps, like Binance, which has already reached a new high, are likely to attract initial buying interest, particularly those in the Blockchain Layer 1 category.

Reference:

Disclaimers

Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
Past returns or performance of digital assets do not guarantee future returns or performance.

Remark: views, information, knowledge and opinions are considered as contents that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither email nor content presented constitutes the investment advice.

Post Views: 412