Ethereum

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<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/sec-approves-eight-spot-ethereum-etfs/" data-wpel-link="internal">SEC Approves Eight Spot Ethereum ETFs</a><br></p>
<p class="p2" style="text-align: justify">As a surprise to the markets, the U.S. Securities and Exchange Commission (SEC) approved eight spot <a href="https://en.coin-turk.com/ethereum-faces-inflationary-trends-and-legal-challenges/" data-wpel-link="internal">Ethereum</a> ETF funds on May 23, leading to a positive optimistic process. However, perhaps even more surprising was Ethereum’s price showing little reaction to this <a href="https://newslinker.co" target="_blank" rel="noopener" data-wpel-link="exclude">news</a>. Before the SEC’s announcement on May 23, Ethereum’s price was $3,742 and it could only rise to $3,859 by May 28.</p> 
<h2 class="p2" style="text-align: justify" id="what-is-happening-on-the-ethereum-front">What is Happening on the Ethereum Front?</h2> 
<p class="p2" style="text-align: justify">In the days before the approval, Ethereum’s value had increased by almost one-third. However, after indications emerged that the SEC could reverse its decision, concerns about Grayscale’s $11 billion Ethereum Trust (ETHE) became a significant factor affecting price movement.</p> 
<p class="p2" style="text-align: justify"><img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-358114 size-full" src="https://coin-turk.com/wp-content/uploads/2024/05/eth-9.jpg" alt="" width="837" height="531"></p> 
<p class="p2" style="text-align: justify">Balancing the effects of significant inflows, Grayscale observed substantial outflows from its Bitcoin Trust (GBTC) for months, and now markets are worried about a possible repetition. In the month following the approval of spot Bitcoin ETF funds, GBTC saw an outflow of $6.5 billion, equivalent to 23% of its assets under management (AUM).</p> 
<p class="p2" style="text-align: justify"><strong>Kaiko Research</strong> prepared a report on May 27 estimating that if history repeats itself, the average daily outflow from ETHE would be $110 million.</p> 
<p class="p2" style="text-align: justify"><img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-358113" src="https://coin-turk.com/wp-content/uploads/2024/05/andrew.jpg" alt="" width="500" height="235"></p> 
<h2 class="p2" style="text-align: justify" id="famous-figure-comments-on-ethereum">Famous Figure Comments on Ethereum</h2> 
<p class="p2" style="text-align: justify">Toni Mateos, co-founder of LAOS Network, a Layer-1 platform enabling asset creation on Ethereum Virtual Machine compatible chains, also predicts significant outflows from ETHE. Mateos commented:</p> 
<blockquote> 
 <p class="p2" style="text-align: justify">“Due to the high liquidity and low fees of ETF funds, significant outflows from Grayscale Ethereum Trust to the new ETF are expected. The ETF targets a broader <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">market</a> due to lower entry barriers and fees.”</p> 
</blockquote> 
<p class="p2" style="text-align: justify">Mateos sees similarities between GBTC and ETHE but also highlights a significant difference in the importance of these Grayscale products for their respective markets. When spot Bitcoin ETF funds were approved, GBTC held around $30 billion worth of Bitcoin, representing 3.5% of Bitcoin’s market value, but ETHE only holds $11 billion worth of Ethereum, representing 2.2% of the market value. Mateos stated:</p> 
<blockquote> 
 <p class="p2" style="text-align: justify">“Given ETHE’s smaller market value percentage, outflows from ETHE to new ETFs should be more limited, making the ETF’s impact proportionally greater than what was experienced on the Bitcoin side.”</p> 
</blockquote> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/sec-approves-eight-spot-ethereum-etfs/" data-wpel-link="internal">SEC Approves Eight Spot Ethereum ETFs</a></h5>

SEC Approves Eight Spot Ethereum ETFs

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