Ethereum surged this week on news that the asset management giant BlackRock had filed an ETF application for the world’s second-largest cryptocurrency.
ETH – Daily Chart
ETH surged this week to $2,000 and followed the recent strength of Bitcoin .
“A massive short squeeze occurred overnight in Ethereum. The funding rate is the highest ever and signals total panic for shorts,” Matrixport’s head of crypto research, Markus Thielen, wrote in a report following BlackRock’s surprise application for an exchange-traded fund (ETF) application.
The asset management giant’s surprise filing came after the landmark June Bitcoin spot ETF application, which could spark a retail rush to crypto assets.
“This is nuclear winter for everybody who doubted ethereum,” Thielen said. “Market-neutral crypto hedge funds are making a killing with these funding rates. Inflows into crypto hedge funds will be high on the agenda for allocators.”
Investors are now awaiting the arrival of a BTC ETF where retail money could surge into crypto.
Ethereum has suffered price losses alongside the broader crypto market since its peak in late 2021. The collapse of the non-fungible token market and the decline of interest in the decentralised finance market blocked ETH.
