Ethereum ETF Demand Up 150% Since Trump Win
28 Nov, 2024 ● Coin news
Demand for leveraged Ethereum-based trading products is surging, signaling growing momentum that could push the world’s second-largest cryptocurrency past the critical $4,000 mark.
Investors are increasingly exploring leveraged Ether positions, enabling them to borrow funds temporarily to magnify their trades.
According to Vetle Lunde, head of research at K33 Research, demand for the VolatilityShares 2x Ether exchange-traded fund (ETF) has soared by over 160% since Nov. 5. In a Nov. 28 X post, Lunde noted:
“Since November 5, the ETH equivalent exposure in the VolatilityShares 2x leveraged long ETH ETF has increased by 278,150 ETH (+160%!). VolatilityShares now hold more than half of CME’s ETH [open interest] (50.1%!!).”
This surge in leveraged demand comes three weeks after U.S. President-elect Donald Trump’s victory in the 2024 election on Nov. 5, which boosted risk appetite for assets like cryptocurrencies.
While Ether’s price has lagged behind Bitcoin recently, many market participants believe this trend is poised to change.
Following a recent slump, some analysts predict Ether could climb to $20,000 at the peak of the 2025 bull market based on emerging technical chart patterns.
Although Ether ETFs are seeing increased inflows, recent price gains may also reflect spot buying pressure. Ryan Lee, chief analyst at Bitget Research, explained to Cointelegraph:
“The implied volatility of 1-day options has remained stable, indicating that the recent breakout above $3,600 was driven by spot accumulation rather than speculative activity. This trend suggests ETH may continue to rise, and the ETH/BTC exchange rate, which shows signs of bottoming and rebounding, is worth monitoring.”
Technical formations shared by trader Wolf in a Nov. 27 X post highlight Ether’s bullish outlook:
“One way to view it is as a 3-year cup and handle, with major resistance at 4k. Once that’s cleared, a measured move places it north of $15k.”
November’s record inflows of stablecoins to exchanges also play a role in Ether’s rally. Lee added:
“Sustained net inflows of stablecoins are providing liquidity to the crypto market […] This inflow trend is unlikely to reverse in the short term, suggesting that the market’s momentum will persist.”
Bitcoin’s price recently hit an all-time high of $99,800 on Nov. 22 before retracing to around $91,000, with analysts predicting a potential correction of up to 30% before breaking the six-figure threshold.
Crypto analyst Rekt Capital argued in a Nov. 28 X post that Bitcoin’s current range might support Ether’s growth:
“Bitcoin ranging between $91,000 & $100,000 may very well be a recipe for Ethereum to take the lead and enable money flow into smaller Altcoins.”
Continued inflows into Ether ETFs further bolster its price trajectory.
Farside Investors data shows that Ether ETFs recorded their fourth consecutive day of net positive inflows, totaling over $90 million on Nov. 27.
Sources:
https://cointelegraph.com/news/leveraged-eth-etf-demand-up-160-trump-win-ether-4k
