The excitement among ETH whales and options trader is lacking ahead of Ethereum ETF approval, unlike that for Bitcoin.
STORY HIGHLIGHTS
Ethereum's PoS mechanism a major concern for the SEC foe spot Ether ETF approval.
Unlike Bitcoin, ETH whale addresses can impact price through voting rights.
Option traders are not confident ahead of the Ethereum ETF approval.
With the stellar demand for spot Bitcoin ETFs within the first two months of launch, market analysts are hoping for a similar approval of spot Ethereum ETF. Top industry players like BlackRock and Fidelity have been flexing their muscles to get a spot Ether ETF in the market, however, the overall optimism surrounding this seems to be waning down.
What Are the Roadblocks to Ethereum ETF Approval?
Blofin Analysis has indicated that the likelihood of spot ETH ETFs receiving approval is considerably reduced due to factors such as the negative implications of the PoS mechanism, risks associated with price manipulation, and concerns regarding securitization.
In contrast, BTC holders lack voting rights and their distribution is more even, with whales owning around 40% of BTC supply and about 2,100 whale addresses as of March 2024, reducing the potential for price manipulation compared to ETH.
In the options market, potential leads have emerged. Following the announcement of the spot BTC ETFs application, both BTC and ETH far-month option skewness experienced a notable surge, peaking in November 2023. Conversely, the announcement of the spot ETH ETFs application did not prompt option traders to factor in additional bullish sentiment. The rise in far-month skewness in February is likely attributed to liquidity return rather than the ETF news, reports BioFin.
However, the report highlights that the final decision on the approval of spot ETH ETFs will not hinder the potential breakthrough of ETH price, regardless of the outcome.
In another development, Blackrock has appointed Matt Kunke, formerly a research analyst at GSR, as their Digital Assets Product Strategist. This move underscores Blackrock’s efforts to enhance its cryptocurrency ETF offerings for its customers.
The ETH price has once again surged past its crucial milestone of $4,000 and eyeing further gains as the community prepares for the Dencun upgrade ahead.
