The rally was mainly driven by a number of market-related factors, including the expected launch of an ethereum spot ETF within a few days. As seen in the daily chart, news that the U.S. Securities and Exchange Commission (SEC) has accelerated its approval of Form 19b-4 has sparked a wave of demand since May 20.
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However, even as prices continue to stabilize and rise, speculators have entered the scene: according to CryptoQuant data, the estimated leverage ratio has increased over the past few trading days.
As this ratio rises, more leveraged traders are entering the #BTC scene, looking to profit from price volatility rather than capitalize on what ETH represents as a digital asset. According to CryptoQuant, the estimated leverage ratio was 0.347 on July 16 and rose to 0.354 on July 17. This suggests that traders are increasingly borrowing money on public trading platforms such as #Binance and OKX, and ETH bulls are looking for a shot in the arm if it rises above $BTC As prices rise, the estimated leverage ratio is likely to increase further. The local top is the level of 0.358 recorded on July 14. According to recent reports, the derivative product will be launched early next week and will be available to institutional investors.
the US Securities and Exchange Commission has granted launch authorization to three issuers. However, it is expected that all #ethereum ETF applicants with approved Form 19b-4 will receive launch authorization at the same time.
n It is certain that the Ethereum ETF spot will follow the success of the Bitcoin ETF spot: according to SosoValue, as of July 18, all Bitcoin ETF spot issuers had more than $53 billion worth of #BTC under management.
While this product is long-awaited and likely to have a positive impact on prices, it is unlikely to be in as much demand as the spot bitcoin ETFs were when they were launched.
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