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Crypto’s Rejuvenation: Ethereum Futures ETF Approval and Dollar Weakness Fuel Market Surge

Crypto currency prices were mixed on Friday as bitcoin fell below its $27,000 level. Ethereum rose in anticipation of
Valkyrie’s ethereum futures launch.
Ethereum traded around $1,670 late Friday after climbing near $1,690 intraday. ETH hovered around its $1,6000 level
since the beginning of September.
The increase in demand for Ethereum was accelerated by the approval of the futures ETF product and weakening in the
dollar’s value.
In this blog post, we will explore the recent approval of Ethereum Futures ETFs and its impact on the crypto market, as
well as how the weakening US dollar is contributing to the surge in crypto currency prices.
The Ethereum Futures ETF Effect

Media reports that the US Security Exchange Commission (SEC) was poised to approve ether futures ETFs appears to
have been boosting the token’s price. Ethereum prices, little changed over the last month, have rallied nearly 6% this week
alone, including a 3.3% jump on Thursday.
These ETFs offer a convenient way for investors to gain exposure to Bitcoin without the complexities of ownership,
including storage and regulatory concerns.
The total crypto market volume over the last 24 hours is $20.94B, which makes a 39.81% increase. The total volume in
DeFi is currently $1.95B, 9.32% of the total crypto market 24-hour volume. The volume of all stable coins is now $18.96B,
which is 90.53% of the total crypto market 24-hour volume.
This move increases accessibility, making it easier for traditional investors to access Ethereum, potentially attracting both
institutional and retail investors. It also boosts liquidity, resulting in smoother price movements and reduced volatility.
Ethereum futures can aid in price discovery, reflecting market sentiment and fundamentals more accurately.

Furthermore, they provide risk management tools for institutional investors to hedge their ETH exposure. Valkyrie’s
approval for ETH futures in an ETF signals growing regulatory acceptance, enhancing investor confidence and attracting
more capital to the Ethereum ecosystem.

Dollar Weakness and Crypto currency Resilience

Historically, there has been a negative correlation between the price of Bitcoin and the value of the U.S. dollar. This means
that when the dollar is strong, the price of Bitcoin tends to fall, and vice versa.
One reason for this negative correlation is that Bitcoin is often seen as a hedge against inflation. When the value of the
dollar is decreasing due to inflationary pressures, investors may turn to Bitcoin as a way to protect their assets.
Another factor is the role of the dollar in the global economy. As the world’s reserve currency, changes in the value of the
dollar can have a significant impact on the global economy, including the crypto currency market.
For instance, during the COVID-19 pandemic in 2020, as the US Federal Reserve implemented expansive monetary
policies to combat economic downturns, Bitcoin’s price surged from around $5,000 in March to over $29,000 by
Similarly, during the European sovereign debt crisis in 2011 and the Eurozone’s economic uncertainty, Bitcoin experienced
significant price gains, attracting investors seeking to protect their wealth from a weakening dollar and global economic
Investors perceive crypto currencies, especially Bitcoin, as a hedge against currency devaluation due to their unique
Michael Sonnenshein, CEO of Grayscale Investments, emphasizes how Bitcoin’s limited supply of 21 million coins makes
it a long-term hedge against inflation. This scarcity shields it from devaluation stemming from excessive money printing
by central banks.
Furthermore, crypto currencies operate on decentralized networks, immune to government manipulation. Billionaire hedge
fund manager Paul Tudor Jones likens Bitcoin to gold, highlighting its independence from traditional financial systems.
Nigel Green, CEO of deVere Group, underscores their global appeal and borderless nature.

Crypto currencies are also linked to the "digital gold" narrative. JPMorgan strategists note Bitcoin’s similarity to gold in the
1970s, positioning it as a digital alternative.
Dan Morehead, CEO of Pantera Capital, stresses Bitcoin's non-correlated nature, offering diversification within portfolios.
Raoul Pal, founder of Real Vision Group, sees Bitcoin as a pristine reserve asset amidst geopolitical uncertainty.

Predictions and Cautionary Notes

The future of the crypto currency market is poised for continued growth and evolution. Crypto currencies are likely to
become more integrated into mainstream financial systems, with increased adoption by institutions and corporations.
This adoption will be driven by growing recognition of blockchain technology’s potential beyond currency, extending to
applications in supply chain, finance, and more. Regulatory frameworks will mature, providing a clearer path for
institutional participation while also enhancing investor protection.
However, the market will continue to grapple with issues such as volatility, scalability, and environmental concerns,
necessitating ongoing innovation and adaptation for long-term sustainability.
Institutional interest in crypto currencies is expected to surge further as established financial players continue to enter the
market. This could involve more investment vehicles like ETFs and a wider array of financial products centered on crypto
Simultaneously, regulatory developments will play a crucial role in shaping the industry, with governments worldwide
working to strike a balance between fostering innovation and safeguarding investors.
Clearer and more comprehensive regulations are likely to emerge, providing greater legitimacy to the crypto space while
addressing concerns about fraud and market manipulation.
Investment in crypto currency is down from its late 2021 peak. But is still much higher than only a few years ago.
As of July 2020, an estimated $9.1 billion of value was locked in decentralized finance.

By December 2020, this figure had risen sharply to $25.2 billion. As of April 2023, $51.5 billion of value is locked in
decentralized finance.
How Does Market Volatility Risk Impact Stock Prices? The more volatile the price of a security, the riskier the investment
is given the added unpredictability. Investing is the act of balancing risk and reward, so the potential for outsized gains
cannot exist without the possibility of incurring substantial losses.
During periods of market volatility, it's essential to take five key steps to safeguard your financial well-being. First,
establish or review your financial plan to ensure it aligns with your goals. Second, bolster your emergency fund to provide
a safety net in case of unexpected financial setbacks.
Third, re-evaluate your risk tolerance to ensure your investments match your comfort level. Fourth, confirm that your
portfolio is adequately diversified to mitigate risk. Lastly, seek guidance from a financial professional to navigate the
turbulent market and make informed decisions.
In conclusion, the Ethereum futures ETF approval is seen as a catalyst for price gains, making Ethereum more accessible
to traditional investors and improving liquidity and risk management in the market.
The crypto market has demonstrated remarkable resilience and is poised for continued growth, driven by increasing
institutional interest and evolving regulatory frameworks.
With its resilience, expanding adoption, and innovative potential, the crypto market is positioned to play a transformative
role in the evolving financial landscape, offering new opportunities and diversification for investors worldwide.

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