Cryptocurrency trader Matthew Hyland stated in an article on May 24th that "I believe that compared to a Bitcoin spot ETF, there is less likelihood of a sell-off with an Ethereum spot ETF (approved for listing)."
He pointed out that unlike Ethereum, Bitcoin did not experience a price drop in the period before the SEC approved the Bitcoin spot ETF on January 10th.
"The Bitcoin ETF was not subject to a pullback in the months leading up to its approval. Selling pressure began when the Grayscale Bitcoin spot ETF was listed the next day. According to Farside data, since the launch of the Bitcoin spot ETF, GBTC has had a net outflow of 17.6 billion US dollars.
As of May 20th, Ethereum had fallen 15% in two months, until reports emerged that the US SEC may have shifted its position towards approving the ETF, after which Ethereum surged 29% in three days.
Although some are concerned that Grayscale's plan to convert its Ethereum Trust (ETHE) into an ETF may lead to selling pressure and price impact.
"A key similarity is that both have Grayscale products. The Grayscale ETF led to selling pressure on Bitcoin and the same may happen with the Ethereum ETF once it is listed," Hyland said. (Cointelegraph)