The Securities and Exchange Commission (SEC) approved the Ethereum exchange-traded funds (ETFs), stirring reactions in the crypto market. While the approval highlights a step forward for Ethereum, the immediate price response was a dip from $3,750 to $3,500. This unexpected dip has led to a range of speculations about ETH’s future movements.
CryptoBusy highlighted that the Ethereum ETF’s approval joins a list of major crypto events that triggered a “sell on news” pattern. Historical instances include the Bitcoin CME futures in December 2017, Bakkt’s launch in September 2019, the Coinbase IPO in April 2021, and the Bitcoin Futures ETF in October 2021.
Moreover, Ethereum has also seen similar patterns, particularly during “The Merge” in September 2022, the “Shanghai” upgrade in April 2023, the Bitcoin Spot ETF approval in January 2024, the “Dencun” upgrade in March 2024, and the Bitcoin Halving in April 2024. These events have often led to initial sell-offs before potential rebounds.
Several industry experts provided insights into why ETH did not see an immediate price surge post-approval. Gabriel Shapiro (@lex_node) pointed out that only 19b-4 forms were approved, not S-1s, and the approval came from the division of trading and markets on “delegated authority.” This procedural nuance means a commissioner could challenge the decision within ten days, suggesting political undercurrents in the approval process.
Moreover, Shapiro indicated a possible horse trade involving pro-crypto moves in exchange for implementing ESG rules before July 1 to avoid potential challenges from future political shifts.
Zach Rynes (@ChainLinkGod) noted that the SEC’s pivot led to early buying activity, explaining the current price stability. The ETFs have yet to launch, which means new capital inflow is still anticipated. Consequently, the market remains in a holding pattern and is awaiting further developments.
Additionally, @sassal0x remarked that the market had been bracing for an ETF denial, giving only a few days to adjust to the approval news. As a result, ETH might be undervalued, with the true impact of the ETF still to unfold once trading begins.
According to the latest data, Ethereum’s price is $3,661.88, with a daily trading volume of $46,625,623,109. Ethereum has been down 3.55% on the last day, portraying the market’s cautious stance.
The approval of the Ethereum ETF is a key milestone, yet the market’s immediate reaction has been mixed. Historical patterns of “sell on news” events, procedural nuances, and political factors contribute to the current price dynamics. As the ETFs launch and market participants adjust, the true impact on ETH’s price will become clearer.
