Spot Ethereum ETFs, following in the footsteps of Bitcoin, are finally opening for trading today. Analysts have generally indicated that a "buy the rumor, sell the news" phenomenon may occur for Ethereum, similar to what was observed with spot Bitcoin ETFs.
QCP Capital pointed out that although the ETH ETF launch was highly anticipated, the market reaction has been subdued, and the ETFs have not significantly influenced the market or price.
Analysts have noted that the response of the ETH price to the ETF launch has been restrained, with investors waiting to see if there will be a sell-off event in ETH ETFs as was seen with BTC.
Drawing a comparison, analysts mentioned that Bitcoin dropped to $38,000 after its ETF launch but reached a new all-time high (ATH) two months later.
Despite the ETF launch, the spot market has remained quiet. Analysts suggest that the options market expects further downward movement in the short term, influenced by news from the US Government and Mt. Gox.
They have recently highlighted that the spot ETH ETF might not initially impact prices, and with potential selling pressure from the US Government and Mt. Gox, spot prices could stay stagnant until the US elections in November.
"The market reaction to the spot Ethereum ETF launch has been muted, as investors are waiting to see if it follows the 'buy the rumor, sell the news' trend.
For comparison, the Bitcoin price dropped to $38,000 after its ETF launch but reached a new ATH two months later.
While spot prices remain lackluster, the options market presents a different scenario, anticipating further downside in the near term, exacerbated by news from the US Government and Mt. Gox.
With the spot ETH ETF not initially impacting prices and potential selling pressure from the US Government and Mt. Gox, prices may remain stagnant until the US elections." #ETH_ETFs_Approval_Predictions #etherreum #ETH🔥🔥🔥🔥 #EtheruemETF #Cryptocurrencies