On January 10, 2024, the launch of Bitcoin ETFs marked a significant milestone, capturing the market‘s full attention and setting a record for the best first-day ETF entry. However, the BTC price subsequently declined, affecting the broader market. By March, Bitcoin reached an all-time high of $73,500. Following these developments, focus shifted to Ethereum ETFs.
SEC’s Approval for New ETFs
As the final decision date for spot Ethereum ETFs approached on May 23, market sentiment turned pessimistic. Contrary to expectations, positive predictions from leading ETF analysts came true just days before the deadline. The SEC expedited the process, granting the first approval for spot Ethereum ETFs and advancing to the S-1 document approval phase.
According to a recent announcement, spot Ethereum ETFs are set to begin trading on July 23. This news triggered a series of positive market reactions, boosting cryptocurrency prices.
Impact on Ethereum’s Price?
Minutes after the announcement, the SEC approved two more ETFs: the Grayscale Spot Ethereum Mini ETF and the ProShares Ethereum ETF. However, despite these positive developments, Ethereum’s price faced challenges.
Following the news, Ethereum saw a price decline of 1.11% within 24 hours, although it had risen by 10.75% over the past week. Concurrently, Ethereum’s market cap dropped to $411 billion, and its 24-hour trading volume decreased by 17% to $17.33 billion. This may indicate waning interest in Ethereum, and Bitcoin’s influence on Ethereum’s decline has also been suggested.
Valuable Insights for Investors
– Investors should monitor the approval and trading dates of new ETFs for potential market impacts.
– A significant drop in Ethereum’s trading volume could indicate a shift in market sentiment.
– Bitcoin’s price movements can influence Ethereum’s price, underlining the interconnected nature of the crypto market.
After weeks of fluctuating, Bitcoin’s price briefly climbed above $66,000 before settling back to $64,600, with a trading volume of $34 billion after a 20% decline.