The price of Ethereum rose to its latest high of the day based on its sharp increase in recent months.
According to CoinDesk, the world’s second largest digital currency with a market value of $4,401.89 after 9 p.m. Eastern Summer Time.
When that level is reached, the cryptocurrency will surge more than 46% this month, reveals additional data from CoinDesk.
Moreover, ether has shown an impressive 497.5 percent yield so far.
After hitting recent highs, the digital asset has pulled back a bit, but as of this writing they are still trading at $4,368.80.
[Editor’s note: Investments in cryptocurrencies or tokens are highly speculative and the market is largely unregulated. Anyone considering this should be prepared to lose their entire investment.]
In line with the recent surge, there are several developments that could explain why the price of Ethereum has soared to record highs.
Option expiration date
More than $1 billion in ether options expire tomorrow, many of which are highly coordinated, according to data provider Bybt.
The numbers show that investors have made some very bullish bets and there are many ways to buy Ether stock at a strike price of $5,000.
The option to cancel the exercise price has more than 116,000 ether open interest at the time of writing, according to additional figures from Bybt.
If the digital currency does not increase significantly before the option expires tomorrow, the above-mentioned contracts will expire in vain.
However, traders can win by buying Ether Call Options contracts at lower hit prices.
According to Cointelegraph analysis, it is in the interest of investors holding these derivative contracts to keep the price of the digital currency above $4,200. That brought the Bulls over $200 million.
Another possible reason for the recent surge in Ether is the expectation for approval of Exchange Traded Funds (ETFs) related to digital currencies.
After the US Securities and Exchange Commission greened the ProShares strategic Bitcoin ETF, many wondered if government agencies would do the same for the Ether ETF.
Carlo di Florio, professor at Columbia University and director of the SEC, told MarketWatch that regulators could approve ETFs linked to ether futures before allowing the listing of bitcoin spot ETFs. Which says.
The Commodity Futures Trading Commission (CFTC) regulates the futures contracts available on the Chicago Board of Trade, the global marketplace for these derivatives.
“That is why the SEC is happy to approve the [Bitcoin-Futures-ETF] product. I basically don’t know [physical Bitcoin],” Diflorio told MarketWatch.
He said regulators would likely approve ETFs with Ether futures “because they are futures” and “follow the same path the SEC settles for ETFs with Bitcoin futures, so they have the same rules”. You can use convenience. ”