HomeNewsNew ETH ETF Filing Boosts Ethereum (ETH) Price by 8% to $3,700,...

New ETH ETF Filing Boosts Ethereum (ETH) Price by 8% to $3,700, SEC Review Nears

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  • The proposed ETF, “ETHL,” seeks leveraged exposure to Ethereum, carrying higher risk due to its leverage mechanism.
  • Amid uncertainty, Ethereum’s price increases to $3,700, driven by strong market and social activity and derivatives interest.

Defiance ETFs, a company that sponsors exchange-traded funds (ETFs), has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) for a new ETF that aims to offer double the daily return of the CF Rolling CME Ether Futures Index. 

This index tracks the performance of Ethereum futures. The ETF, which has been proposed to trade under the ticker “ETHL,” is designed to give investors leveraged exposure to the fluctuations in Ethereum’s price. However, it also carries a higher risk due to its leverage.

More about: Ethereum ETF Concerns Dismissed by Consensys, Traders Watch Quant and Chainlink Competitor for Upcoming Rallies

Following this, Defiance also filed for an ETF that seeks to offer double the inverse performance of MicroStrategy’s stock. Both ETFs, if approved, will have Tidal Investments LLC as their investment adviser. Currently, Defiance ETFs manages nine ETFs in the U.S. markets, with a total asset under management of approximately $1.4 billion. These ETFs focus on several sectors including innovative technologies.

The application for the Ethereum-based ETF comes at a time of uncertainty regarding the SEC’s approval of a spot Ethereum ETF, with a decision expected by May. 

Ethereum’s price has recently increased by about 8% in the last 24 hours to approximately $3,630, amid signs of heightened market and social activity. Derivative traders have shown interest in Ethereum’s potential for the end of April, with significant open interest in options at higher strike prices.

Related: Optimistic Outlook: Why Delayed Ethereum ETF Approval Could Benefit Market Dynamics

Despite the positive market activity, some analysts caution that the anticipation of an Ethereum spot ETF approval may lead to temporary market momentum that could reverse if the SEC decides not to approve the ETFs.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628