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The market has been difficult for cryptocurrencies over the past year, with prices continuing to navigate muddy waters in a bid to gain the momentum necessary to climb past the predetermined resistance levels. Investors remain steadfast and dedicated to buying Ethereum, adding it to their list of holdings and saving it for the long term to see its value grow. The prices have been stagnant for a while now. Following the plunge on August 17th, they’ve remained virtually unmoving. September has never been a great month for digital money, but October is an entirely different matter.
Many investors currently believe that the second month of fall will bring a rally that helps mediate some of the previous losses. Exchanges such as Binance have started recording more activity, as investors have regained their interest and want to buy Ethereum again.
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ETFs have caused plenty of talk among investors, being one of the latest hypes in the ever-changing and evolving cryptocurrency landscape. On October 2nd, nine new ETF products were released. However, following the first day after their introduction, both investors and analysts claimed that the reception for them has been relatively mild compared to the craze that preceded them. Over the first twenty-four hours, the accumulated value stood at less than $2 million.
The initial excitement, therefore, doesn’t seem to have had any follow-up for the price and trading action. Yet others disagree, saying that the ETFs lived up to the expectations, especially when compared to similar launches that are backed by traditional finance. The most popular out of the entire collection was the Valkyrie Bitcoin Strategy ETF, which is tracking a combination of ETH and BTC. In total, it raked up almost $900,000 from the entire volume.
The product has already been trading as a Bitcoin-only future since 2021 but recently adjusted to incorporate Ethereum as well. Several United States firms have fought for the correct positions in the developing ETH futures market, so it’s plain to see that the sector has a long way ahead of itself.
Volatility Shares, a financial company that offers a considerable range of different exchange-traded funds, announced on October 2nd that it was putting its plans to launch ETH futures on hold. The main reason was that the changes within the market didn’t provide the right opportunities for enduring development.
However, that doesn’t mean that the service doesn’t plan to release futures at a later date. However, the plans aren’t settled at the moment. Predictions estimated that Volatility Shares will be among the first companies to offer Ether futures. The US Securities and Exchange Commission was also expected to officially approve the product on October 12th.
Ethereum VS Bitcoin
The rivalry between BTC and ETH is well-known to investors. It only makes sense, considering that the two are the most prevalent cyber tokens in the world. Over time, there have been different predictions regarding the movements between the two. Some investors expressed their belief that prices will begin to change at some point in the future and that Ethereum might ultimately surpass Bitcoin. According to others, however, that is nothing more than wishful thinking, and BTC remains the supreme ruler of the cryptocurrency environment.
Given the relatively weak performance of the last nine assets to be released, some investors have urged the community to rotate towards Bitcoin, at least temporarily. The initial trading volume of the Ether ETFs is only 0.2% of the amount ProShares Bitcoin Strategy ETF, also known as BITO, amassed during its first trading day two years ago, in October 2021. Ethereum ETFs are unlikely to come close to the values anytime soon, especially as the Bitcoin-based product was launched during one of the most potent bull markets in the history of cryptocurrencies.
The approval of the spot for ETFs that could arrive in March, as well as the halving event set for mid-April, will also work in Bitcoin’s favor, so value accumulation is likely to continue for Bitcoin. Macroeconomics has also become steadily more important for the Bitcoin landscape over the past few years, so much of the growth or decline also has to do with that.
Crypto exchange JPEX has recently become embroiled in a scandal, which resulted in the Hong Kong Police Force and the SEC creating a crypto-focused group that is set to deal with any illicit activities within the environment. New information continues to appear in connection with the Dubai-based company. Days before an October 4th meeting between the authorities, eleven individuals were detained for questioning regarding their possible role in the scandal. The SEC alleges that the company has knowingly promoted services without a license.
The investigation is still ongoing, and the group’s role is to share any information they might find regarding potential suspicious activities, as well as determine the risks of different exchanges. Collaborating with investigators is also a natural part of the proceedings. Given the troubles surrounding the JPEX saga, regulators have said they will start looking into cryptocurrency markets more closely and create more comprehensive sets of rules for digital tokens.
CeFi to DeFi
Centralized financial services are a tried-and-tested method that has proven efficient over several decades. The platforms offer liquidity and convenience, but the rise of new technologies has led many to consider whether there are any ways in which they could be improved. Many of the centralized services have begun incorporating the blockchain as part of their systems.
CeFi is relatively vulnerable to systemic risks that can have catastrophic consequences. Investors who operated on these platforms had to deal with considerable losses from bankruptcy to hacking. It’s not just individuals but also retail and institutional investors that lost their holdings. Decentralized finance offers extra stability for asset management. The emergence of the sector provides investors with much-needed alternatives that allow them to take security into their own hands and have more control over their portfolios.
Despite the struggles the crypto environment has had to deal with lately, the assets remain popular among investors. One of the main reasons is that the technology isn’t just fitting for decentralized finance but can also help with the development of numerous other industry sectors. And that’s the appeal of cryptocurrencies and the blockchain.