The ETF was approved last night, but the market did not surge as expected!
In fact, the Ethereum spot ETF went from being unpopular with only 7% approval rate to a 75% approval rate overnight.
More than four months after the Bitcoin ETF was approved, the Ethereum ETF was also approved!
In the early morning of May 24, the U.S. Securities and Exchange Commission approved the 19b-4 forms of multiple Ethereum spot ETFs, including those from BlackRock, Fidelity, and Grayscale. However, although the form has been approved, ETF issuers need to make the S-1 registration statement effective before they can start trading. The SEC has just begun discussing the S-1 form with issuers.
Everyone must be wondering now, why the market did not surge after the ETF was approved?
First of all, everyone should be clear about one thing, that is, although the ETF 19-4 form has been approved, the ETF issuer needs to make S-1 effective before trading.
That is to say, although the ETF has been approved, it cannot be traded. The ETF funds have not entered the market to bring more funds and more liquidity to the market!
Once again, this leaves everyone with a suspense, an opportunity to hype up ETFs again, and an opportunity to boost the broader market!
This time it was not like the Bitcoin ETF, which was listed on the Nasdaq the next day after approval, because this time it was really too hasty, and the CSRC made a temporary change due to pressure from the election.
Because before the ETF is officially launched (the shoe has not dropped), Ethereum will have huge upward momentum.
Therefore, the longer the extension, the better. Only on the day of listing on the Nasdaq will the positive factors be exhausted and the real correction begin.
So how should we operate in this wave of Ethereum market? Where can we buy at the bottom and sell at the top?
We can refer to the trend of Bitcoin ETF before and after its approval. Bitcoin ETF was approved on the morning of January 10th, New York time.
After that, it surged by nearly 10%, and then there was a small correction. It was not until the next day when it was listed on the New York Stock Exchange and Nasdaq that the good news was exhausted and it began to pull back sharply.
Then the market will continue to be hot until the ETF is officially listed on the New York Stock Exchange. However, the market will be affected by the pullback, and then the major Wall Street funds will enter the market.
Two weeks after the correction, Bitcoin started to rise for several months, directly from 38,000 to 73,000. So when the market plummets, remember to buy at the bottom bravely, because Ethereum’s journey has just begun!
4000 is just the starting point. ETH will soar to 6000 in two or three months, and then soar again to 8000 or even 10,000 during the Prague upgrade at the end of the year. That will be our ultimate opportunity to escape the top!
The Ethereum spot ETF is expected to be listed on the exchange in July or August, so the official launch of the transaction is good for the realization of shipments!
If 19b-4 has passed, it means that the ETH spot ETF has definitely passed, and it is only a matter of time before it is listed. If Ethereum succeeds, all the Ethereum copycats will soar!
However, the approval of the 19b-4 document does not mean that the ETF has been approved. To be formally listed, the ETF issuer also needs to obtain the S-1 document approved by the SEC.
The S-1 filing is a registration statement that a company submits to the SEC for an initial public offering (IPO) or other securities offering, including the listing of an ETF.
The S-1 filing is not the last step, but it is a very critical step under the supervision of the US SEC!
Only after the SEC completes its review of the S-1 document and approves it, the S-1 document will take effect and fund managers can continue to prepare for the official listing of the ETF, including determining the listing date and conducting marketing.
In general, the approval of 19b-4 means that the project is feasible; the approval of S-1 means that it is a done deal. Currently, this process takes several weeks to several months, so the price will not skyrocket in a short period of time.
In addition, multiple spot Ethereum ETFs have been listed on the DTCC website, which is likely to be the script for the BTC spot ETF!
Pay more attention to the currencies associated with Ethereum: L2 sector: $OP , arb, metis, ldo, etc.
New coin section: $ETHFI , ENA
meme coin section: $PEPE , bome, wif, etc.
What impact will the Ethereum spot ETF have?
The approval of the Ethereum spot ETF may be unexpected. Unlike the Bitcoin spot ETF, investors began to make plans half a year before the Bitcoin spot ETF was approved, and there was a large influx of funds. However, the approval of Ethereum spot ETH is still a milestone event for the crypto industry, and its impact has also laid a positive foundation for the future development of the crypto industry.
Is there any hope for altcoins?
The approval of the spot ETF will have the most direct impact on the price. Bitcoin has risen by 75% since the approval of the spot ETF, and the impact of the approval of the Ethereum spot ETF on the price of ETH is obvious. However, the news of the approval of the Ethereum ETF did not immediately shake the altcoin sector, and it even fell slightly compared to the previous few days.
“If approved, we expect the spot Ethereum ETF to drive inflows of 2.39-9.15 million ETH in the first 12 months following approval,” said Geoff Kendrick, head of FX research and digital asset research at Standard Chartered Bank. “In U.S. dollar terms, this equates to roughly $15 billion to $45 billion in assets,” he added.
Kendrick added, “Given that we now see Bitcoin hitting the $150,000 level by the end of 2024, that would imply an Ethereum price of $8,000.”
In addition to affecting the price of ETH itself, the Ethereum spot ETF will also have a positive impact on the altcoin market. Because the vast majority of altcoins in DEX use ETH as a trading pair, the rise of ETH will lead to a passive rise in altcoins.
In addition, some market opinions believe that with the approval of the Ethereum spot ETF, it will have strong reference significance for more cryptocurrencies to apply for ETFs in the future.
Crypto regulatory policies may change
Another important impact of the approval of the Ethereum spot ETF is the change in the attitude of US regulators towards crypto policy.
As the U.S. election approaches, the inclinations of the Democratic and Republican parties toward the crypto industry are worth paying attention to.
Previously, former U.S. House Speaker Nancy Pelosi was considering supporting a Republican-backed crypto bill FIT21 when the House voted this week. In addition, there is also a cryptocurrency accounting standards bill SAB121 that will be resolved in the near future.
Summary: When the ETF can start trading, it will be the time for another outbreak. This time when it falls back, you must remember to follow Dabai’s way of arranging new stocks: buy the bottom in batches, so as not to miss the next surge!
If you are unable to seize the opportunity to enter the market in time, follow Dabai’s plan and pay attention to Dabai’s latest developments in a timely manner!
The first thing I want to do is to think of a way to keep up!
