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Ether ETF approved so why aren’t we rich yet?
Crypto commentators suggest there could be two reasons why the price of ETH hasn’t rocketed in the wake of spot Ether ETF approvals.
On May 23, the Securities and Exchange Commission approved eight spot Ether ETFs to be listed on their respective exchanges. $Ethereum (ETH.CC)$ fell 3.4% just before the news, recovering by around 5% shortly after, and is currently trading at $3,802.
Crypto commentator Zach Rynes argues that the lack of movement reflects the notion that “everyone who wanted to buy the approval already did.”
Ether had already surged 29% over the past week after reports suggested the SEC may have pivoted its stance toward ETF approvals.
Rynes and many others also note that while the ETFs have been approved, they still haven’t been cleared for launch, as that will also require an approved S-1 filing — a comprehensive document including details on the firm’s financials and risk profile, as well as the securities they intend to offer.
VanEck has just sent its amended S-1 filing to the SEC and analysts have been saying could take weeks to months for the re S-1 approvals.
Rynes believes the next major price force for Ether will be ETF inflows once they begin trading.
“ETFs haven’t actually launched yet, so net new capital inflow is still to come,” Rynes wrote, with crypto research firm Second Mountain echoing a similar sentiment.
“Expect a massive capital inflow in the first week, potentially reaching billions,” Second Mountain stated in a May 23 X post just before the SEC approved the ETFs.
However, some say it might not immediately lead to an upward trend.
Bitcoin’s price dropped 15% after spot Bitcoin ETFs were approved for trading on Jan. 10. According to CoinMarketCap data, it took 30 days for the price to spike 30% to $51,870.
There are also lingering concerns that Grayscale’s announcement of its plans to convert its Grayscale Ethereum Trust (ETHE) into a spot Ether ETF could result in significant outflows — similar to Grayscale Bitcoin Trust (GBTC) after the approval of spot Bitcoin ETFs in January.
“Grayscale also re-filed the ETHE registration they'd withdrawn. Remember GBTC outflows? Now it's $11B+ ETH that’s been trapped for 7 years,” pseudonymous crypto trader Rho Rider warned in a May 23 X post.
Since spot Bitcoin ETFs started trading on Jan. 11, GBTC has shed a total of $17.6 billion in assets, per Farside data.
Relax, Ether is undervalued, say maxis
“ETH is stupidly undervalued,” added independent Ethereum educator Sassal, arguing that the market has had only three days to “price in the ETF approval.”
Meanwhile, $Bitcoin (BTC.CC)$ stumbled slightly by 1.2% to $67,362 following the announcement but has since recovered to $67,976 at the time of writing.
Around the same time, PEPE hit another new all-time high, reaching $0.00001531, a 5% increase within the hour following the approval news.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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🎙️Discussion: 1. How will tariff policies affect the movement of key assets such as U.S. stocks, gold, and Bitcoin? 2. Given this context,
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AI Lambert JR : The price last month already reflected the expectation. Now it's adjustment time finally. Target 64K before any possibility of strong rebound. Waiting patiently.
egan1 AI Lambert JR : yea exactly after the btc one got approved, it was pretty much the next step, and everyone knew. It would have been interesting to see what would have happened if it hadn't been approved.
103480872 : it's easy to manipulate the market for something that doesn't have fundamentals and isn't as stable as gold. If institutions have more cash than BTC, it can increase the price by buying it, but when it has a lot more BTC, it can just drop the price
103480872 : and also it's harder to move up BTC now since the market cap is already more than 1 T. Currently big organisations have more power to drop the price, that's why I short sell it at 71k. In addition, BTC has 3-4 years cycle, If I'm wrong, I can just wait for 1 year rather than waiting for 4 years
103480872 : if you check the best ROI per year in BTC:
2013: +5189.4%
2017: +1162.5%
2020: +270.3%
as the market cap grows it's getting harder and harder to manipulate the market up. the peak BTC this year already +65.6% at 73k.