Key Points
- Bitcoin and Ethereum prices fell despite the approval of several Ethereum ETFs by the US SEC.
- Experts remain optimistic about the future of Ethereum and the crypto market overall.
Despite the US Securities and Exchange Commission (SEC) approving a number of Ethereum (ETH) exchange-traded funds (ETFs) on May 23, 2024, the prices of both Bitcoin (BTC) and Ethereum have dropped in the last 24 hours.
This decrease in price seems to follow the typical “buy the rumor, sell the fact” trend. Prior to the approval, Ethereum had seen a 20% increase in the week leading up to the decision. However, following the announcement, Ethereum fell by 5.87%, and Bitcoin decreased by 3.53%. The total market capitalization also fell by 1.19%, landing at $2.44 trillion.
Ethereum’s Price Pullback Post-ETF Approval
According to Alex Kuptsikevich, a senior market analyst at FxPro, this pullback isn’t surprising. He suggests that the price could pull back to the $3000 area, returning to a significant consolidation area. Kuptsikevich compares this to the similar price movement seen in January 2024 following the approval of the first Bitcoin ETF, where Bitcoin’s price initially dipped 19% before making a significant recovery.
While the approval of the 19B-4 forms is a step forward for Ether ETFs, it’s crucial to note that these funds aren’t yet cleared for trading. The SEC still needs to approve the individual S-1 filings before investors can purchase shares.
However, the approval process seems to be progressing. The SEC has approved eight ETF proposals from major financial players like BlackRock, VanEck, Fidelity, Franklin Templeton, Bitwise, ARK Invest 21Shares, Invesco Galaxy, and Grayscale. These ETFs are expected to list on major exchanges like the Nasdaq, NYSE Arca, and Cboe BZX.
Long-Term Optimism for Ethereum
Despite the recent drop in price, experts remain optimistic about Ethereum’s future and the overall crypto market. Standard Chartered predicts that Ether ETFs could attract up to $45 billion in their first year. QCP Capital anticipates that Ethereum’s price could jump by more than 60% soon, driven by growing interest from institutional investors in futures and direct purchases.
The recent price drop of Ethereum after the ETF approval highlights the volatile nature of the crypto market. However, it’s crucial to view this as part of Ethereum’s growth story. These ETF approvals are paving the way for more investment from institutional players.
