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Ethereum’s lackluster performance has little to do with spot ETH ETF approval

Ether’s price performance is hindered by stagnant network use, high fees and regulatory uncertainty.

The Ethereum spot exchange-traded fund (ETF) was approved by the U.S. Securities and Exchange Commission (SEC) on May 23. Despite this long-awaited decision, the price of Ether (ETH) failed to hold above $3,800 on May 24, which was surprising given that ETH was trading at $3,943 just two days earlier. The market had been uncertain about the approval odds, so the decision, particularly its timing, caught many off guard.

Some market participants quickly pointed out that the SEC has not yet approved the individual S-1 statements from each issuer, a process that could take weeks or months. This delay, among other factors, is hindering Ether’s performance, including the network's stagnant growth, relatively high transaction fees, and regulatory uncertainty in the U.S.

Some of the recent profit-taking likely resulted from the anticipation of the spot ETF's approval, which triggered a 23% rally on May 20, an event often termed "sell the news." Traders bought ETH expecting the official announcement, especially after the SEC reportedly urged exchanges like the NYSE and Nasdaq to expedite their 19b-4 filings on May 20.

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Grayscale’s Ethereum ETF could bleed $110M daily in first month: Kaiko

Price analysis 5/24: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB

The spot Ether ETFs approval by the SEC has failed to start a rally in Ether and Bitcoin, but this could change after a few weeks.

The United States Securities and Exchange Commission (SEC) greenlighted  several spot Ether exchange-traded funds on May 23, but the decision failed to ignite Ether (ETH) or the crypto markets. Does this mean that the ETF decision was already priced in? It is difficult to judge by the initial reaction because Bitcoin’s (BTC) price had also dipped just after the approval of the spot Bitcoin ETFs. However, the price turned around after a few days and skyrocketed to a new all-time high.

The approved spot Ether ETFs are expected to launch by mid-June, according to Bloomberg ETF analyst Eric Balchunas. He projects the Ether ETFs to garner roughly 10-15% of the inflows seen by the Bitcoin ETFs. Once money starts flowing into Ether ETFs, the spot market is likely to respond favorably.

Although Bitcoin remains stuck in a sideways price action, Fundstrat Global Advisors managing partner and head of research Tom Lee remains uber bullish. In an interview with CNBC, Lee said their base case for Bitcoin by the end of the year is $150,000.

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Grayscale’s Ethereum ETF could bleed $110M daily in first month: Kaiko

Ethereum ETF approval sees minor decline in broader market, $400M in liquidations

The crypto market experienced significant volatility following the SEC's approval of spot-based Ethereum ETFs, with analysts suggesting it was a "sell-the-news" event and traders suffering over $400 million in liquidations.

The post Ethereum ETF approval sees minor decline in broader market, $400M in liquidations appeared first on Crypto Briefing.

Grayscale’s Ethereum ETF could bleed $110M daily in first month: Kaiko

Ethereum price soars on spot ETF rumor — How are ETH options markets positioned?

Ethereum price soared to a 2-month high at $3,700 today as analysts significantly boosted their expectation that a spot ETH ETF could be approved.

On May 20, the price of Ether (ETH) surged over 18% after Eric Balchunas, a senior analyst at Bloomberg, raised the approval odds for the Ethereum exchange-traded fund (ETF) from 25% to 75%. Balchunas noted that the United States Securities and Exchange Commission likely faced political pressure, as their previous position showed little engagement with ETF applicants.

Balchunas further mentioned that the SEC is reportedly asking exchanges like the NYSE and Nasdaq to update their filings, although there has been no official confirmation from the regulator. Nonetheless, Nate Geraci, co-founder of the ETF Institute and president of the ETF Store, stated that the final decision is still pending regarding the registration requirement for individual funds (S-1s).

According to Geraci, the SEC could approve the exchange rule changes (19b-4s) separately from the fund’s registration (S-1), which could technically be delayed beyond the May 23 deadline for VanEck’s Ethereum spot ETF request. This allows the regulator additional time to review and approve these documents, considering the complexities and risks associated with structures involving Proof-of-Stake (PoS) cryptocurrencies.

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Grayscale’s Ethereum ETF could bleed $110M daily in first month: Kaiko

Bitcoin price hits $70K as spot and BTC ETF buying surges

Analysts believe Bitcoin price is en route to new highs now that the recent consolidation phase has come to an end.

Bitcoin (BTC) price rallied to the coveted $70,000 mark amid a noticeable surge in spot buying and spot BTC exchange-traded fund (ETF) purchasing, with the cryptocurrency community pondering whether the bull market is just beginning or nearing its peak. 

Analyst “ELI5 of TLDR” suggested that the majority of on-chain indicators point to a nascent bull market, despite some showing topping patterns. The recent support bounce near $60,000 has sparked increased interest, with Farside Investors reporting approximately $950 million in inflows last week, a figure not seen since March.

Should this trend continue, BTC could potentially exceed expectations. Currently, BTC is trading within a few hundred dollars of $70,000, with the 20-day EMA at $64,371 and a positive RSI indicating that an upward breakout is more likely. Overcoming the $68,000 resistance suggests that BTC price is on the path to $73,777, though this level may trigger a strong bearish response.

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Grayscale’s Ethereum ETF could bleed $110M daily in first month: Kaiko