How will the results of ETH's ETF tonight affect the market?
1. Failure
Negative.
Ethereum plummeted across the board, and it may even drive the market down.
2. All ETFs passed at once
Negative.
Just like BTC's ETF, all passed on the same day, it means that Grayscale's ETH ETF will also pass. Grayscale holds 3 million ETH, with a market value of 11 billion US dollars and a management fee of 2.5%. Because early users have been trapped for 2 or 3 years and can finally sell, coupled with high management fees, there will be a huge sell order in the short term. It is likely to repeat the market situation two weeks after BTC's ETF was passed, when BTC fell from 48,000 to around 40,000.
3. Only vanEck's ETF application was approved according to the application time
Negative.
According to the application time, Grayscale's ETF will be reviewed on June 18. Before that, there are three ETFs from vanEck, ARK&21shares, and hashdex that need to be approved. This means that before June 18, ETFs will be almost all buying orders, and there will be no selling orders. It will be a major positive for the market, and Ethereum will hit a new high.
4. Half-passed
Both negative and positive exist at the same time.
That is, only the 19b-4 document is passed, and the s1 document will be approved later, which may take weeks or months.
This situation is the most complicated, because there will be funds dumping the market after the good news is implemented, but the expectation of full approval in the future is also a positive. The two are intertwined, funds are playing games, and long and short battles.
However, no matter which of the above results, for long-term holders, it can be ignored. After all, ETFs are incremental funds in the long run. Bitcoin will eventually rise to 100,000, and Ethereum will also rise to 10,000!
