Ethereum's Trial by Fire: Hashdex's Retreat and the SEC's Reluctance Ignite Investor Panic (Around $593.6 Million)!
The recent decision by Hashdex to withdraw its application for an Ethereum ETF has sparked panic among Ethereum investors.
This move followed the SEC’s delays and increasing pessimism regarding the approval of spot Ethereum ETFs.
Analysts from Bloomberg, who had previously been optimistic, have now adjusted their approval predictions significantly lower, indicating a 30% chance of approval.
The SEC's cautious stance towards cryptocurrency-based ETFs, especially spot Ethereum products, is driven by concerns over market volatility, liquidity, and potential manipulation.
While the SEC has approved futures-based Ethereum ETFs, it remains hesitant on spot ETFs due to these regulatory risks.
In the wake of Hashdex's withdrawal, Ethereum experienced a notable sell-off, with its price dropping by approximately 4.4% within 24 hours.
This panic selling reflects investors' fear of prolonged uncertainty and regulatory hurdles, which could affect Ethereum's market stability and future growth prospects.
Overall, the SEC's delay and Hashdex's retreat underscore the ongoing challenges in bringing cryptocurrency ETFs into mainstream financial markets, leaving investors wary of future regulatory developments.
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Is it a manipulation by SEC to create a panic sell off by retail investors ?
