Ethereum

Bitcoin ETF

Spot

<figure> 
 <figcaption>
  Cover image via <a href="https://u.today/">U.Today</a>
 </figcaption> 
</figure>
<p dir="ltr">Reports are surfacing, originally noted by <a href="https://twitter.com/DeItaone/status/1783437874068607069">Walter Bloomberg</a> on the X platform, that the United States may be set to deny the introduction of spot Ethereum (ETH) Exchange-Traded Funds (ETFs) as soon as next month. The information is not yet considered definitive nor confirmed by any officials. Nonetheless, the rumors have gained some credibility given the absence of positive signals regarding the approval of an <a href="https://u.today/nearly-500-million-in-ethereum-transferred-to-justin-sun-linked-wallet">Ethereum</a> ETF.</p>
<h2 dir="ltr" id="how-important-is-etf">How important is ETF?</h2>
<p dir="ltr">The effect of an ETF on a cryptocurrency can be substantial. When the Bitcoin ETF was launched, it allowed institutional investors to gain exposure to Bitcoin without the complexities of direct ownership. In much less than a year, Bitcoin exchange-traded funds (ETF) have gathered net inflows of roughly $12.1 billion.</p>
<p dir="ltr">However, the dynamics of Ethereum are distinct from those of Bitcoin. Ethereum does not quite match Bitcoin's appeal to institutional investors, with Bitcoin being more similar to a store of value. Hence, the speculation is that the impact of an Ethereum ETF may not have mirrored the Bitcoin scenario. An Ethereum ETF, if it had been approved, may not have sparked the same level of market enthusiasm, given Ethereum’s different use cases and investor base, more like traditional stocks.</p>
<h2 dir="ltr" id="ethereum-s-price-performance">Ethereum's price performance</h2>
<p dir="ltr">It is obvious the asset is experiencing volatility as the news drops. <a href="https://u.today/sec-calls-for-comments-on-blackrocks-ethereum-etf-proposal">Ethereum</a> is maneuvering below key levels and has experienced a substantial price drop after traders who anticipated positive ETF news started selling their holdings.</p>
<img alt="ETHUSD" data-entity-type="file" data-entity-uuid="d467fd67-6532-4df8-9206-150ba16418dc" src="https://u.today/sites/default/files/inline-images/image_722.png"><a href="https://www.tradingview.com/">ETH/USD Chart by TradingView</a>
<p dir="ltr">If reports end up being truthful and an <a href="https://u.today/sec-delays-decision-on-another-spot-ethereum-etf">Ethereum</a> ETF is indeed off the table for now, the market may enter a broader correction. However, given Ethreum's focus on decentralized applications and finance, the long-term effect of the ETF might be slightly overestimated. Key drivers for Ethereum remain fees from dApp usage, overall crypto market growth and technological advancements.</p>

US to Deny Spot Ethereum (ETH) ETFs Next Month: Sources

Table of Contents

U_Today

Other articles published on Apr 25, 2024

Avalanche (AVAX) Move from Garanti BBVA!

Meta to let Xbox, Lenovo, Asus build new Quest metaverse hardware

Woman accused of $6B scam, China loophole for Hong Kong Bitcoin ETFs: Asia Express

Bonk (BONK) Bullishness: 80% Price Rise Triggers Investors – Boon or Bane?

Shiba Inu Token Burns Surge Despite Price Drop

Cardano Crisis Or Comeback? ADA’s Key Metric Hits Low, What This Means For Investors

Join our free newsletter for daily crypto updates!