Important!
So you know what to expect next week.
It is a near certainty that the Ethereum ETFs will get final approval for trading next week.
If you hold Spot dont panic if price falls after approval.
When approvals happen Grayscale trust(ETHE) investors will likely sell their holdings.
*See attached images*
What is the Grayscale ETHE trust?
From the Grayscale site👇
"Grayscale Ethereum Trust is one of the first securities solely invested in and deriving value from the price of Ethereum ("ETH") that enables investors to gain exposure to ETH in the form of a security while avoiding the challenges of buying, storing, and safekeeping ETH, directly. "
Basically it is a way of investing in ETH through a proxy Trust.
The ETF approval now allows direct investment in ETH(commodity), not via a trust listed as a "security"
The ETHE trust has been open since 2019.
The Grayscale ETHE trust has $10 Billion Assets under management
Grayscale charge the highest fee(2.5%) for their ETF, other funds charge 0.19%-0.25% for reference.
Grayscale charge 10x more, i have no idea why.
Basically this means that investors will either convert their trust shares to the approved ETF fund and pay 2.5% fees or they will cash out profits and possibly invest with another ETF fund that charges 0.25%
When its 10s of millions that 2% difference in fees is huge, other funds offer exactly the same service
Most will likely cash out their shares.
This large amount of sell pressure could force ETH price down after the ETF launch.(Short term)
Also a LOT of leverage is being opened in anticipation of the approval, long and short, it will no doubt be very volatile.
Opening high margin trades expecting this to only be Bullish could be a huge mistake.
$10 Billion in possible sell pressure will have a HUGE impact on price if it is sold in the days after, especially when there is Billions of leveraged liquidity within 10% of the ETH price.
The sell pressure will be temporary, 5-7 days.
Trade Safely
Peace
