Following the initiation of spot Bitcoin ETF trading, the price of Bitcoin experienced a 15% decline; however, traders are unsure if Ether’s price would follow suit.
When spot Ether exchange-traded funds (ETFs) are introduced, traders are hesitant to assume that the price of Ether would drop, as was the case with Bitcoin when spot Bitcoin ETFs began trading.
As opposed to the BTC ETF, I believe there is less chance of a selloff here following the ETH ETF, according to cryptocurrency trader Matthew Hyland in a piece published on X on May 24. Hyland emphasised that prior to the introduction of spot Bitcoin ETFs on January 10, there had been no decrease in the price of Bitcoin, in contrast to Ether.
“In the months preceding it, the Bitcoin ETF did not experience any decreases. After the Grayscale ETF was listed the next day, there was a push to sell, Hyland continued. The Grayscale Bitcoin Trust (GBTC) has lost $17.6 billion in assets since the introduction of spot Bitcoin ETFs, according to Farside data.
Prior to allegations that the SEC may have changed its position on ETF approvals, Ether had dropped by 15% over the course of two months by May 20. Within three days of the reports, Ether saw a 29% increase. As of this writing, CoinMarketCap data shows that Ether is trading at $3,752.
Concerns have been raised, meanwhile, over Grayscale’s intentions to transform its Grayscale Ethereum Trust (ETHE) into an exchange-traded fund (ETF), which could lead to selling pressure and affect prices. “Having a grayscale result is one of their main similarities. Selling pressure for Bitcoin was caused by the Grayscale ETF, and Hyland predicted that the ETH ETF will have a similar situation if it is listed.
However, Hyland anticipated that Ether’s price would rise, given that it hit “local highs” of $4,092 in March of this year in the absence of the encouraging announcement of the approval of a spot Ether ETF. The all-time high for the year occurred shortly before ETF expert Eric Balchunas reduced his expectations for spot Ether ETF approval to 25%.
Michaël van de Poppe, the founder of MN Trading Consultancy, shared a similar feeling of ambiguity until the spot Ether ETFs begin trading. In a May 24 X post, van Pope stated, “It’s a waiting period until the listing takes place, and then the inflow will provide whether there’s a strong continuation upwards.”
On May 24, there was a story on the general discussion on the lack of change in Ether’s price after the SEC approved spot Ether ETFs. Declaring that “ETH is stupidly undervalued,” independent Ethereum instructor Sassal contended that the market has just had three days to “price in the ETF approval.”