Top Picks
What are ETH ETFs Futures? How this contract works
Ether (ETH) ETFs debuted in Canada in 2021 and have been approved by the US Securities Commission. The concept of this contract is not yet popular in Vietnam and has only recently received attention, as the ETH Spot ETF approval deadline is increasingly approaching.
ETH future ETFs are futures derivative contracts of Ether ETF certificates, allowing traders to invest in ETH through a third-party organization by simulating the price action of Ether. Thanks to that, traditional investors do not need to participate in the Web3 world or own ETH tokens but can still trade to make profits from it.
Organizations currently issuing this contract in the United States include Bitwise, VanEck, and ProShares. These organizations will handle issues related to futures contracts, and control transactions to ensure risk and legal compliance.
Instead of having to hold physical assets, Ether futures ETFs buy/sell futures contracts. These contracts are commitments to buy or sell ether at a predetermined date in the future at a pre-selected price. Without having to deal with a wallet or cryptocurrency exchange, investors can expose themselves to Ethereum's price fluctuations by purchasing these contracts through an ETF, which simply pools the investor's funds to buy them.
Let's say an Ether futures ETF contract contracts to buy 100 ETH for $4,000 each for three months. The ETF will profit and its stock price increase if Ether reaches $4,500 before the contract expiration date. Conversely, the ETF will lose money if the ETH price drops to $3,500.
An important point to remember is that Ether futures ETFs continuously manage their contracts by rolling them over to maintain risk levels. This means they buy new contracts with later expiration dates and sell contracts that are about to expire. The price of the ETF and the actual spot price of Ether may differ slightly as a result of this process.
Below is the general implementation process when investing in Futures ETFs, using VanEck Ethereum Strategy ETF as an example. VanEck Ethereum Strategy ETF provides exposure to regulated Ether futures contracts, simplifies the complexities of direct ownership, and its C-Corporation (C-Corp) structure enhances tax efficiency for investors while still ensuring legal compliance.
The first step involves creating an account on a brokerage platform (e.g., Fidelity, Robinhood, Vanguard, and Charles Schwab) that allows ETF trading.
Use its ticker symbol to search for the VanEck Ethereum Strategy ETF or any other Ether futures ETF. The VanEck ETF's ticker symbol is EFUT.
Conduct due diligence on your chosen ETF before purchasing. Read relevant information and reports, as well as evaluate the risk and return when deciding to invest.
Buy the desired number of shares of the Ether futures ETF by placing a buy order, just like you would with traditional stocks. To complete a purchase, specify your order type, such as limit order or market order.
After purchasing, monitor ETF performance; remember that Ether futures ETFs carry the cryptocurrency's legacy volatility which may be reflected in their stock price.
The entry price for this order is very attractive as some analysts believe that ONDO's reasonable price is in the range of 0.4-0.7 USD. With a significant investment beyond the expected scope, Lookonchain suspected the whale had an insider.
Someone created a new wallet 27 hours ago and withdrew 1,870.68 $ETH ($5.7M) from #Gemini .
Then he spent the 1,870 $ETH ($5.7M) to buy 6M $ONDO at an average price of $0.95 in the past 27 hours.
Does this guy know something that we don't? https://t.co/3ZQ6s6SnVM pic.twitter.com/G1udIF8Mhw
— Lookonchain (@lookonchain) May 17, 2024
This transaction attracted the attention of the crypto community and ONDO, the native token of Ondo Finance, skyrocketed 11% immediately after the purchase.
However, ONDO has dropped after the latest bounce and is trading below the $1 threshold at the time of writing. However, ONDO is still increasing by more than 19% over the past week.
Crypto analyst Mags commented on the price movement, sharing analysis on the next price target for ONDO.
“If the price closes above 1 USD, the next target will be 1.4 USD and 2.7 USD or more.”
$ONDO keeps printing up +131%
$1.5 Incoming, Binance listing soon 👀 https://t.co/bF8lznNDOP pic.twitter.com/5v95S4aZvn
— Mags (@thescalpingpro) March 25, 2024
A whale created a new wallet on May 16 and withdrew 1,870.68 ETH (worth $5.7 million) from the Gemini cryptocurrency exchange to buy 6 million ONDO tokens at an average price of 0, 95 USD.
The entry price for this order is very attractive as some analysts believe that ONDO's reasonable price is in the range of 0.4-0.7 USD. With a significant investment beyond the expected scope, Lookonchain suspected the whale had an insider.
Someone created a new wallet 27 hours ago and withdrew 1,870.68 $ETH ($5.7M) from #Gemini .
Then he spent the 1,870 $ETH ($5.7M) to buy 6M $ONDO at an average price of $0.95 in the past 27 hours.
Does this guy know something that we don't? https://t.co/3ZQ6s6SnVM pic.twitter.com/G1udIF8Mhw
— Lookonchain (@lookonchain) May 17, 2024
This transaction attracted the attention of the crypto community and ONDO, the native token of Ondo Finance, skyrocketed 11% immediately after the purchase.
However, ONDO has dropped after the latest bounce and is trading below the $1 threshold at the time of writing. However, ONDO is still increasing by more than 19% over the past week.
Crypto analyst Mags commented on the price movement, sharing analysis on the next price target for ONDO.
“If the price closes above 1 USD, the next target will be 1.4 USD and 2.7 USD or more.”
$ONDO keeps printing up +131%
$1.5 Incoming, Binance listing soon 👀 https://t.co/bF8lznNDOP pic.twitter.com/5v95S4aZvn
— Mags (@thescalpingpro) March 25, 2024
Fantom (FTM), a once famous layer-1 blockchain, is receiving attention again ahead of an important upgrade called Sonic.
On the evening of May 17, the Fantom Foundation posted an important governance proposal, announcing to the community a new project called Sonic Network (S). Sonic Network is a new layer-1 blockchain developed by Fantom on the new Sonic technology platform, replacing Fantom's old Opera version.
https://x.com/FantomFDN/status/1791517798205907116
Once the Sonic Network is deployed, FTM holders will be able to redeem tokens 1:1 for the Sonic network currency called S. Those who do not want to redeem can still continue to hold FTM. However, the Fantom Foundation encourages users to migrate to the new network as all the attention and development effort of the project will be transferred here.
The rest of the proposal retains the changes that were mentioned in the Sonic upgrade announcement at the beginning of the year.
Both Fantom's FTM and TVL token prices have increased more than 30% in the last 7 days, the clearest signal that money is being poured back into the project.
Specifically, while the FTM price increased from 0.64 USD to 0.84 USD, the value locked (TVL) of Fantom increased to 200 million USD on May 16, before decreasing to 129 million USD at the time of writing. This is the highest TVL level that Fantom has achieved since July 2023, when the Multichain hack occurred, causing heavy damage to the ecosystem.
