How will Ethereum perform in the future? Let's take a look at the trend of Bitcoin spot ETF at the beginning of the year
The U.S. Securities and Exchange Commission (SEC) officially approved the 19b-4 document of the Ethereum spot ETF this morning, but the price of ETH has not changed much. Can we predict the trend of the Bitcoin spot ETF after its current approval?
The U.S. Securities and Exchange Commission (SEC) officially approved the 19b-4 documents (Exchange Rule Changes) of eight Ethereum spot ETF applications, including BlackRock, Fidelity, and Grayscale.
However, unlike the rapid listing of Bitcoin spot ETFs at that time, issuers still have to wait for the SEC to approve their S-1 registration statement documents before they can officially start trading. It is not clear how long this process will take, but analysts speculate that it may take several weeks to two or three months.
How will Ethereum perform in the future?
At present, it should be a clear trend that the Ethereum spot ETF will be listed in the middle of this year, but more investors may be concerned about the future trend of ETH. Ethereum has not fluctuated much except for a spike of $3,523 earlier due to online rumors that "SEC postponed the decision on the spot Ethereum ETF by 6 hours" and a brief hit of $3,900 after the review results were released. Both bulls and bears seem to be preparing for the next move.
Looking at the trend of Bitcoin spot ETF at the beginning of the year, although the two situations are not quite the same, we may be able to refer to the price trend of Bitcoin spot ETF after it passed the review at that time and get some clues from it. After passing on 2024/1/10, Bitcoin spot ETF was immediately listed for trading the next day, but after a short surge, it fell from $47,000 to $38,000. The decline lasted for nearly two weeks before it started to rise sharply.
During that period, the biggest selling pressure came mainly from Grayscale's GBTC. The correction of negative premiums and higher handling fees made investors choose to take profits or transfer positions. When the Ethereum ETF is really listed this time, Grayscale's ETHE may also experience the same situation.
According to statistics, as of May 22, the size of ETHE funds was approximately US$10.9 billion; although it is not as large as GBTC at the beginning, it may also bring a certain degree of selling pressure. In addition, market bulls may also want to clear the leverage of other investors first and then pull it up after obtaining enough liquidity (kill first and then pull up).Investors are reminded to do a good job of risk management, after all, market changes are always unpredictable.
