Ethereum
ETH ETF Deadline Looming | Without a bank
The moment of truth. The first deadline for final approval of Ethereum ETFs is today, but many crypto assets have plunged into the red ahead of this monumental decision. Is there anything to be learned from early morning price action, and where does ETH go from here?
Despite yesterday’s Nvidia earnings report and the announcement of a 10:1 NVDA stock split, which would theoretically boost the stock’s attractiveness by reducing the purchase price from $1,000 to lower levels. retailing around $100, most assets are down on this day.
While the morning drop could be interpreted as an overzealous crypto-specific bull surge on the approval of the ETH ETF, the decline was accompanied by a decline in broader risk markets that began at 5:30 a.m. PST and sent the S&P. 500 down nearly 1% from its pre-market highs.
via Trading View
In an attempt to predict what the future holds for Ether’s future price trajectory, many analysts have looked to the historical performance of the only other crypto asset to receive a spot ETF: Bitcoin.
Although the chances of approval of these two instruments took drastically different paths, the high consensus on spot approval of the BTC ETF for many months after BlackRock filed stood in stark contrast to the overwhelming sentiment of Spot ETH ETF denial manifested over the past few months, both assets saw much fanfare to kick off approval week as market participants attempted to anticipate the launch.
If the story is confirmed a second time, Ether should be inflated later today, given that BTC lost 6% just before the US spot markets closed at 1 p.m. PST (4 p.m. EST) after the SEC. published an “order granting expedited approval” of spot BTC ETFs, however, with market participants aware that spot BTC ETFs were not a near-term bullish catalyst, it is certainly possible that traders could lose approval.
Bloomberg ETF analysts currently predict that we should receive information on the SEC’s decision to approve or deny VanEck’s ETH spot ETF at the same time today.
From here, we could expect some retracement before ETH hits new highs, until actual trading for the new spot products begins…
As was the case with the BTC approval process, it seems likely that all pending spot ETH ETF applications will receive simultaneous approval and begin trading on Friday, but some analysts continue to maintain that it could there may be one-off approvals or a delay in negotiations given what they have planned. perceive be a sudden restart of the approval process.
Unfortunately, beyond this point, history suggests that Ethereum will have to digest a substantial amount of redemptions from the Grayscale Ethereum Trust (ETHE) of $10 billion in assets under management, which will likely weigh heavily on the price in the coming weeks before easing and allowing a further increase.
With some optimism, there may be no bleeding following the ETF approval if months of depressed sentiment have left market participants too underweight on ETH, as could be indicated by the multi-year lows the ETH/BTC ratio was trading at last week. However, it will undoubtedly take a significant amount of net new inflows into ETH beyond ETFs to offset outflows from ETH.
Of course, any possibility of near-term bullish surges presupposes that spot ETH ETFs are approved today; a denial could explain the SEC’s rationale for why Ether is a crypto asset security and wreak havoc on virtually every token except BTC.
When asked this morning for insight into the impending ETH ETF decision, SEC Chairman Gary Gensler gave an ominous sign. informed investors to “stay tuned” and asserted that his agency’s approval of spot BTC ETFs was only constrained by the DC Circuit Court’s decision in the case of gray levels.