Grayscale, a titan in the crypto asset management realm, has reportedly submitted documents to the US Securities and Exchange Commission (SEC) to establish a new Ether (ETH) Futures Exchange Traded Fund (ETF). This revelation came from a Wall Street Journal report.
The paperwork for the ETF was lodged under the Securities Act of 1933, though Grayscale had earlier registered for an Ether Futures ETF in line with the Investment Company Act of 1940.
Even though Bitcoin Futures ETFs have received the SEC’s nod under both legislative acts, the majority of ETFs usually opt for the 1940 act.
Speculation in late August, as covered by crypto media, hinted at the SEC potentially green-lighting several Ether Futures ETFs by October.
Such speculations sent Ether’s price soaring, fueled by anticipatory moves from traders. The broader accessibility of Ether Futures ETFs might indirectly heighten the demand for the digital currency, especially if institutional investors jump on board once these ETFs are operational.
The recent trading price for Ether hovered around $1,640, slightly above its 21-day moving average.
Price Prediction – Where Next for Ether (ETH)?
Ether’s imminent closure above its 21-day moving average (21DMA), after a compelling surpass in the last two days, paints an optimistic picture for its short-term price trajectory.
For over two months, the 21DMA posed significant resistance, holding Ether back.
Breaching this level paves the way for a possible surge towards the 50-day moving average, situated just over $1,700, and might even propel Ether to revisit its late August peaks, which hover around $1,740.
Should ETH seal its position above the 21DMA, the near-future price forecasts for the cryptocurrency are poised to skew more bullish.
Traders should remain vigilant regarding upcoming significant economic events, notably the forthcoming rate determination and monetary policy declaration by the US Federal Reserve on Wednesday.
While no alteration in interest rates is anticipated from the central bank, it is predicted to hint at the potential for future rate increases. Additionally, a fresh set of interest rate projections from its policymakers, along with new economic outlooks, is expected.
ETH’s trajectory might be influenced depending on the reactions of the US bond market and the US dollar. A dovish outcome from the meeting—indicating lowered expectations about potential interest rate hikes—might depress yields and the US dollar, which could, in turn, give ETH a boost, and the opposite might hold true for a hawkish stance.
Moreover, some Ether traders might exhibit caution, refraining from taking significant positions in the cryptocurrency. This hesitancy stems from the anticipated Futures ETF decisions by the SEC in October, as many adopt a watchful approach leading up to the announcement.
Ether (ETH) Alternative to Consider
An inherent limitation of an Ether Futures ETF is that its holders may not capitalize on the attractive yields typical of Ether staking.
To truly leverage Ether’s staking yields, which hover around 4%, investors would be more prudent to purchase the actual ETH token directly and establish a staking node. Alternatively, they could invest in ETH liquid staking derivatives, like stETH.
For those willing to venture into a more speculative crypto domain promising higher staking yields, the recently unveiled Bitcoin BSC (BTCBSC) token is worth a glance.
Bitcoin BSC is a BEP-20 token anchored on the Binance Smart Chain. Interestingly, it mirrors Bitcoin’s tokenomics almost entirely. However, it harkens back to Bitcoin’s early days in 2011, when the token’s price was a mere $1.
As of now, Bitcoin BSC tokens are available in a presale at $1 apiece, with funds exceeding $2 million already amassed.
Several attributes position Bitcoin BSC favorably in comparison to Bitcoin. For one, its environmental footprint is smaller owing to the Binance Smart Chain’s reduced energy consumption. Furthermore, it seamlessly integrates into the rapidly expanding Decentralized Finance (DeFi) ecosystem of the Binance Smart Chain.
Furthermore, Bitcoin BSC offers an enticing proposition for holders: the chance to stake their tokens and earn BTCBSC at a rate similar to Bitcoin’s issuance rhythm from 2011.
This setup indicates that those who stake BTCBSC might reap annual yields in the double or even triple digits.
Drawing parallels, another project named BTC20—which shares the same core idea but exists as an ERC-20 token on Ethereum—experienced immense success. It swiftly reached its ambitious presale goal of $6 million and subsequently witnessed a valuation surge of up to 6x. Impressively, BTC20 remains valued above its initial presale tag of $1.
For investors who felt the pang of missing out on BTC20, Bitcoin BSC presents a fresh opportunity to jump on board early.
There’s a possibility that Bitcoin BSC might outperform BTC20, given the intrinsic advantages of the Binance Smart Chain, such as swifter transaction times and reduced fees, fostering an enhanced trading and DeFi experience.
However, prospective investors should act swiftly. Bitcoin BSC is rapidly approaching its hard cap fundraising target of just shy of $4 million.
