Ethereum Approved ETF So Why Aren’t I Rich Yet?
Despite the adoption of spot ether exchange-traded funds (ETF) in the United States, there are likely two main reasons why ether (ETH) has moved in price.
On May 23, the Securities and Exchange Commission approved eight spot ether ETFs for listing on their respective exchanges. Ether fell by 3.4% before the news, recovered by around 5% shortly after, and is currently trading at $3,806.
Crypto analyst Zach Raines argued that the lack of activity reflects the mentality that “everyone who wants to buy the token has already done so.”
Ether is up 29% in the past week after reports suggested the SEC may have reversed its stance on ETF approvals.
Rynes and many others said that even though the EFAs had been approved, they had not yet been cleared because that approval required an S-1 filing — a comprehensive document detailing the company's financial and risk profile, as well as the securities it intended to offer.
VanEyck has just sent an amended S-1 filing to the SEC, and analysts have said it could take weeks to months for re-S-1 approvals.
Raines believes that the next major price force for Ether will be ETF earnings once trading begins.
“ETFs haven't launched yet, so net new capital inflows are yet to come,” Raines wrote, echoing crypto research firm Second Mountain.
“Expect massive capital inflows in the first week, potentially in the billions,” the SEC said in a May 23 X Post before approving ETFs.
However, some say this does not lead to an immediate upward trend.
The price of Bitcoin fell 15% after the Bitcoin ETF was admitted for trading on January 10. It took 30 days for the price to increase 30% to $51,870, according to CoinMarketCap data.
Related: Ether Rises 18% Amid New Hope for Ether ETF Approvals
After approving spot Bitcoin ETFs in January, there have been lingering concerns that Greyscale's announcement of plans to convert the Grayscale Ethereum Trust (ETHE) into an Ether ETF could result in massive outflows.
“Grayscale has also re-registered their ETHE registration. Remember GBTC exits? It's now $11B+ ETH that has been blocked for 7 years,” warned anonymous crypto trader Rho Rider in a May 23 X post.
Since spot Bitcoin ETFs began trading on January 11, GBTC has liquidated a total of $17.6 billion in assets, according to Farside Data.
Relax, the price of Ether is low, say Maxis
Independent Ethereum educator Sassal argued that “ETH is stupidly undervalued,” arguing that the market had only three days to “provide an ETF price.”
Meanwhile, Bitcoin (BTC) stumbled slightly by 1.2% to $67,362 following the announcement but recovered to $67,706 at the time of writing.
At the same time, PEPE (PEPE) reached another new all-time high, reaching $0.00001531, a 5% increase in the hour following the approval news.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
