Bitcoin, Ether Rally Cools Following U.S. Ether ETF Listing Approval

According to CoinGecko’s data, Ether has experienced a 4% decrease in value since it received approval. Previously, there was a 20% increase in its price over the past week due to optimistic signs of upcoming approvals and enhanced prospects for the related ETFs. The CoinDesk 20, a widely-traded index comprising the largest cryptocurrencies, witnessed a decline of 4.5% within the last day. Additionally, the overall crypto market capitalization saw a loss of approximately 2.9%, bringing it down to around $2.5 trillion.

“Ethereum‘s price drop despite favorable news is a common response from market speculators, referred to as ‘buying the rumors, selling the facts,'” explained Alex Kuptsikevich, an analyst at FxPro, in an email to CoinDesk. “It wouldn’t be unexpected if the cost dipped back towards the $3000 region once more, returning to a significant consolidation zone. Large institutional investors might then begin acquiring Ethereum through ETFs from these levels.”

“He noted that the Bitcoin price experienced a similar pattern in January following the ETF’s approval. The price dropped by 19% over the next fortnight before undergoing an impressive recovery.”

The SEC made a significant move on Thursday by giving its approval to pivotal regulatory documents regarding ether ETFs, marking a landmark achievement for the second-largest cryptocurrency. However, these ETFs have not been authorized for trading yet. While the 19B-4 form has been accepted, allowing for the proposal and listing of the ETFs, the SEC still needs to give its go-ahead on the funds’ S-1 filings before they become available for purchase by investors.

As a researcher, I’ve discovered that regulatory approval has been granted for eight Exchange-Traded Funds (ETFs) from various issuers including VanEck, Fidelity, Franklin Templeton, Grayscale, Bitwise Asset Management, ARK Invest, 21Shares, Invesco, and BlackRock. These ETFs will now be listed on the Nasdaq, NYSE Arca, and Cboe BZX exchanges.

Should the ETFs be given the green light for trading, a substantial surge of institutional investment is anticipated. According to Standard Chartered’s forecast, this could amount to approximately $45 billion in the initial year.

Certain traders are optimistic about ether’s price growth, predicting a surge of over 60% within the next few months. Notably, the interest in ether has picked up significantly, as evidenced by a spike in both futures and spot market transactions for the token during the past week.