- Despite the approval of spot Ether exchange-traded funds (ETFs) in the US, Ether’s price has shown minimal movement.
- On May 23, the Securities and Exchange Commission (SEC) approved the listing of eight spot Ether ETFs on their respective exchanges.
- Crypto commentator Zach Rynes suggests that the lack of movement reflects the idea that “everyone who wanted to buy on the approval has already bought.”
Discover why Ether’s price remains stagnant despite the approval of spot Ether ETFs in the US and what this means for future market movements.
Crypto Investors Eagerly Await Major Price Surges
Ether had already seen a 29% increase last week following reports suggesting that the SEC might shift its stance towards ETF approvals. However, Rynes and many others point out that although the ETFs have been approved, they have not yet received the go-ahead to launch, as this also requires an approved S-1 filing. This comprehensive document details the company’s financial status and risk profile, as well as the securities they plan to offer.
Pending S-1 Approvals and Market Implications
VanEck has submitted its amended S-1 filing to the SEC, and analysts predict that these approvals could take weeks or even months. Rynes believes that the next significant price movement for Ether will come from ETF inflows once trading begins. Echoing this sentiment, the crypto research firm Second Mountain stated in a May 23 post that they expect “a capital inflow potentially reaching billions in the first week.” However, some caution that this might not immediately lead to a bullish trend. For instance, after spot Bitcoin ETFs were approved for trading on January 10, Bitcoin’s price initially dropped by 15%, taking 30 days to reach a 30% increase to $51,870, according to CoinMarketCap data.
Conclusion
In summary, while the approval of spot Ether ETFs is a significant development, the market is still awaiting the actual launch and subsequent capital inflows. Investors should remain cautious and conduct thorough research before making any investment decisions, as the market’s reaction can be unpredictable.
