Stock & Crypto
Bitcoin and Ether see a slowdown in their rally after the approval of a U.S. Ether ETF listing.
Join Our WhatsApp Channel for Update:
Join Now
- Despite the approval of several ether exchange-traded funds (ETFs) for listing in the U.S., both Bitcoin (BTC) and ether (ETH) prices dropped in the last 24 hours.
- Ether’s price, which had risen by more than 20% in the past week, experienced a 4% decline following the approval, marking a “sell the news” event.
- Analysts attribute this sell-off to the typical behavior among speculators known as “buy the rumors, sell the facts.”
- Alex Kuptsikevich, a senior market analyst at FxPro, suggests a potential pullback in ether’s price to around the $3000 mark, attracting large institutional investors to start building positions in ETFs.
- Similar price dynamics were observed in January after the approval of the Bitcoin ETF, which saw a significant price drop before a notable reversal.
- While the U.S. Securities and Exchange Commission (SEC) approved regulatory filings for eight ETFs tied to ether, actual trading is pending SEC approval of the funds’ S-1 filings.
- These approved ETFs come from reputable institutions like VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21 Shares, Invesco Galaxy, and BlackRock, set to list on various major exchanges.
- Analysts anticipate a substantial influx of institutional capital into the ether market if these ETFs are approved for trading, with predictions of up to $45 billion in inflows within the first year.
- Some traders foresee a potential rally of over 60% for ether in the coming months, driven by increased futures and spot buying demand observed recently.
Follow Us
