How will ETH prices be affected?
At present, the general view in the market is that. Since the approval of the Ethereum spot ETF appeared in May, the phenomenon of Sell the News appeared, and the market had waited long enough for the SEC to approve the 19-b and S-1 application documents, which led to the fact that the impact of the ETF on the market was likely to have been digested, so the ETH ETF will not bring too much volatility to the price of ETH.
In addition, there are some more optimistic views that Ethereum will outperform Bitcoin after the launch of the first batch of ETFs.
Research by analysis company Kaiko shows that the upcoming ETH ETF should enhance ETH's performance relative to BTC. Kaiko said that since the regulator approved the ETF in May, the ETH to BTC ratio (an indicator used to compare the two major cryptocurrencies) has risen sharply, from 0.045 to 0.05, and has remained high. In other words, it takes more Bitcoin to buy one ETH, and this trend will only deepen when the ETF goes online. Although the price of ETH has been fluctuating since May, the ratio shows that ETH is ready to rise.
Rachel Lin, CEO of SynFutures, said in May that in addition to demand factors, supply changes will also bring upside, which will lead to a tightening of the price ratio of BTC to ETH. She believes that the market's attitude towards Ethereum is "not optimistic enough" now, and all indicators show that ETH will see a massive bull run in the coming months.
