- Spot Ethereum ETFs were approved for trading on 23rd July.
Despite ETH’s sluggish performance at press time, bullish momentum persists.
As a seasoned crypto investor with years of experience in the volatile world of digital assets, I have witnessed the approval of spot Ethereum ETFs as a significant milestone for the industry. Despite the recent sluggish performance of Ethereum at press time, my optimistic outlook remains steadfast.
After great excitement and numerous revisions, the long-awaited Ethereum [ETH] ETF has been given final clearance for trading in the US, starting on July 23rd.
SEC greenlights spot Ethereum ETFs
The Securities and Exchange Commission (SEC) has approved Ethereum-based exchange-traded funds (ETFs) from companies such as BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy.
The SEC’s approval of the S-1 registration statements on July 22nd marks the final green light for these ETFs to debut on major stock exchanges such as Nasdaq, New York Stock Exchange, and Chicago Board Options Exchange.
The day after President Joe Biden declared his intention to withdraw from the upcoming election, this event transpired.
ETH’s reaction to be delayed?
However, this news did not have a big impact on Ether’s price at press time.
Currently, Ethereum (ETH) has experienced a modest increase of more than 1% in the last 24 hours, reaching a price of $3,521 according to CoinMarketCap data. Surprisingly, investors continue to express positive outlooks despite this lackluster growth.
Encouraging investors to stay strong crypto analyst RunnerXBT said,
“Babe don’t leave, ETH ETF inflows will be better than expected.”
Kaiko’s market prediction
According to cryptocurrency analysis firm Kaiko’s predictions, Ethereum’s price may not increase by more than 24% by the year-end because of lackluster interest in current Ethereum market offerings.
Prior to President Biden’s announcement to withdraw from the election, the Kaiko research had already been carried out.
Remarking on the same, Kaiko’s head of indices Will Cai added,
As an analyst, I would rephrase it as follows: “Last year’s introduction of futures-based Ethereum exchange-traded funds (ETFs) in the US was met with relatively low demand. However, there is considerable anticipation surrounding the upcoming launch of spot Ethereum ETFs, which could lead to significant asset accumulation. Although it may take several months before a complete demand profile becomes clear, Ethereum’s price could be influenced by the inflow figures during the initial days of trading.”
Furthermore, Kaiko’s research indicated that the acceptance of ETFs based on Ethereum spots could substantially influence the value and trends of the Grayscale Ethereum Trust (ETHE).
One significant consequence may be the possible withdrawal of funds from ETHE due to investors transferring their resources towards recently introduced spot ETFs.
As a crypto investor, I’ve noticed that before the upcoming launch of ETHE as a spot ETF on July 23rd, the discount between ETHE shares and their net asset value (NAV) has been narrowing. This suggests that the market price was getting closer to reflecting the true value of each share. However, with increased liquidity expected after the transition to an ETF, I anticipate many investors will be selling their ETHE shares, potentially leading to a larger supply and downward pressure on the price.
With this transition and the shrinking discount, it seems traders are prepared to sell at the net asset value (NAV) prices, thereby reaping their gains.
To summarize, the technical analysis carried out by AMBCrypto on Ethereum using indicators such as Relative Strength Index (RSI) and Chaikin Money Flow (CMF), suggests that the bullish trend is stronger than the bearish trend.
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2024-07-23 21:12