Lack of enthusiasm toward cryptocurrencies comes from regulatory uncertainty, but there’s also some concern on the macroeconomic side
Ether (ETH) has been trading below $3,750 for the past three days, despite the imminent launch of the coin’s spot exchange-traded funds (ETFs) in the United States. Some argue that the lack of bullish momentum for ETH is due to the lack of clarity on how long the individual S-1 fund filing approvals by the regulator could take. Regardless, Ether investors’ bullishness according to derivatives metrics has plunged to a 3-week low.
But, even if the U.S. Securities and Exchange Commission (SEC) approves each of the filings from BlackRock, Fidelity, VanEck, and other firms this week, investors fear that the current market conditions do not favor demand for the Ethereum ETFs. Part of the lack of enthusiasm toward cryptocurrencies comes from regulatory uncertainty, but there’s also some concern on the macroeconomic side as the real estate market displays further signs of stress.
Coinbase, Binance, and Kraken are facing court actions for supposedly failing to register as brokers while offering securities investments. The U.S. SEC and the U.S. Department of Justice also charged crypto companies that included privacy tools such as Samourai Wallet and Tornado Cash. Furthermore, regulators claim that Ether staking services intermediation can be deemed securities, given that there is a promise of returns in exchange for the work of others.
