Ethereum spot ETF's debut was cold: the market reaction was flat, where is the future demand?
In the past two days, the online trading of Ethereum spot ETF can be said to be big news! Although the trading volume of Ethereum spot ETF reached 1 billion US dollars on the first day of online trading, the inflow of funds was only 107 million US dollars, showing a relatively weak market performance.
In contrast, looking back at the previous Bitcoin spot ETF, the trading volume on the first day of listing was as high as 4.5 billion US dollars, and the inflow of funds also reached 600 million US dollars, which were 4.5 times and nearly 6 times that of Ethereum spot ETF respectively.
This difference reflects from the side that the current demand for Ethereum spot ETF is still far behind that of Bitcoin spot ETF.
In response to such differences, some people believe that market demand is often driven by prices rather than news itself. Let's see the specific viewpoint analysis below:
Looking back at the listing of Bitcoin ETF, the price of Bitcoin had experienced more than 3 times the increase at that time. Therefore, this is also one of the reasons why the demand for Bitcoin spot ETF was much stronger than that of Ethereum ETF now.
Similarly, if the price of Ethereum had at least doubled from more than $3,000 to more than $6,000 in the past few months, I believe that the demand for its spot ETF would also increase significantly, just like the Bitcoin spot ETF at that time.
As mentioned above, demand is often driven by price, and the price of Ethereum has not seen a significant surge in recent months. Therefore, there is reason to believe that the fundamental reason why the Ethereum spot ETF is not in strong demand at present is probably because the price of Ethereum itself has not risen significantly in recent months.
That said, if we take a long-term view, the long-term existence of the Ethereum spot ETF will undoubtedly have a positive and positive impact on the cryptocurrency market. Perhaps in the next few months, we will be able to see the real demand situation.
🤔 So, the question is: what do you think about the prospects of the Ethereum spot ETF? How much do you think price changes will affect the demand for ETFs? Will the Ethereum spot ETF become part of your portfolio? Tell me what you think in the comments!
