How I would play the Ethereum ETF and which tokens I would watch.
Detailed directions.
Investor sentiment has quickly shifted towards accumulating ETH Beta investments due to the potential approval of the $ETH ETF.
For those unfamiliar, ETH Beta measures how much the price of Ethereum moves relative to the overall market or a specific benchmark.
Back in January, we witnessed a similar shift in BTC Beta following the ETF approval.
$BTC surged to $49,000 following the ETF announcement, but the price quickly fell back due to the lack of spot buying. This was an expected news sell-off event, but still bullish in the long run.
I expect similar price action for ETH following the approval.
Beta Plays to Watch -
$PENDLE has to be one of the strongest tokens in this narrative. The price has recently corrected due to the $EIGEN airdrop, but it has shown a lot of strength following the ETH ETF news.
$PEPE is another obvious choice for $ETH Beta. While BTC failed to hold structure, PEPE did and is now making new all-time highs. The chart shows a beautiful uptrend and suggests that insiders are taking it as the best bet for ETF approval. Take profits and let the rest run.
$ENS is one of the few coins that has not pulled back throughout the move after BTC ETF approval. I bet on this purely because Vitalik has been promoting it for a year.
$ENA is another coin to watch. It has performed exceptionally well in bullish conditions and is backed by a strong team. The bullishness is that there is no investor unlocking for the time being and it can be adopted by exchanges.
$ARB was an underperformer for a while but is back on track after the announcement. I am still avoiding it personally.
$LDO could see an uptick depending on ETF staking approval.
Beta Plays That Could Disappoint -
$REZ has not really shown any strength since its launch. It is already down 30% from when it was listed on Binance last month. Governance tokens with no “real” use case are disappointing.
$REZ , $XAI and $ETHFI have poor token economics and limited utility — I believe all they get is a complacent rally before a drop.
This is how I trade the ETH ETF.
Hope this helps.