[Ethereum ETF is trading, will ETH price rise? 】
An Ethereum spot exchange-traded fund (ETF) has launched in the United States, but Ethereum (ETH) prices have fallen 8.2% since the ETF's listing, causing investors to question when the new fund's purchases of ETH will drive up prices. Market analysts believe it will take time for these new ETFs to have an impact.
Grzegorz Drozdz, a market analyst at Conotoxia Ltd., mentioned that the situation where the price first fell and then rose after the listing of the Bitcoin ETF may be repeated with Ethereum. Bitcoin started trading at $46,000 on the ETF but fell below $39,000 within two weeks before surging to $73,000 on inflows.
Jupiter Zheng of HashKey Capital, an ETH ETF issuer in Hong Kong, said that the price movement of the Ethereum ETF may be similar to that of Bitcoin, but the impact of the Mt. Gox incident also needs to be considered. Mt. Gox, once the world's largest Bitcoin exchange, shut down in 2014 after a massive Bitcoin theft, and payments to creditors could trigger a sell-off, dragging down market prices.
In addition, the U.S. presidential election also affects the cryptocurrency market. Bartosz Lipinski, CEO of Cube Exchange, believes that investors are waiting for Trump’s speech at the Bitcoin Conference, expecting him to make a major announcement to boost the market.
Justin d'Anethan, head of business development for Asia Pacific at Keyrock, added that general economic market factors have a huge impact. The Federal Reserve will cut interest rates twice this year, first in September and second in December, according to a Reuters poll of 100 economists.
Youwei Yang, chief economist at BIT Mining, believes that Ethereum is regarded as the king of altcoins, and significant interest may emerge when interest rates are cut and more risk funds pour in. Sergei Gorev, risk manager at YouHodler, explained that November is historically the strongest month for cryptocurrencies, and these factors could trigger significant price increases in the fall.
Despite the current pressure on cryptocurrency prices, experts remain optimistic about the long-term outlook, anticipating that inflows into Ethereum ETFs and fading economic factors in the general economy could lead to a strong year-end performance.
