Despite the launch of Ethereum ETFs, the price of the cryptocurrency on the spot market does not rise. What to expect now on ETH/USD?
The arrival of ETFs on Ethereum represents an important step for the integration of cryptocurrencies into traditional financial markets. Initial inflows and positive sentiment in the futures markets suggest that there could be an appreciation in the price of ETH in the medium term. However, the response of the spot market and the technical dynamics do not seem to reflect the same optimism, and uncertainty is starting to weigh on crypto market traders.
Ethereum ETFs have arrived, what does it mean?
July 23, 2024, marks a historic date for the world of cryptocurrencies: ETFs on Ethereum (ETH) officially began trading on the main US stock exchanges.
The approval of Ethereum ETFs by the SEC has not been a simple process. The SEC initially showed resistance due to concerns over Ethereum’s classification as a security and the complexities of staking. However, this changed after a successful legal challenge by Grayscale Investments in August 2023, which pioneered Ethereum ETFs following the model of the Bitcoin ETFs approved in early 2024.
What happened to the launch of ETFs?
The anticipation for the launch of ETFs on Ethereum was very high. On July 22, 2024, one day before the start of trading, ETH addresses saw an inflow of 714,000 ETH.
According to Bloomberg, in the first 15 minutes of trading, Ethereum ETFs attracted total inflows of $112 million. This initial success was facilitated by the fact that many of the ETF issuers reduced or eliminated fees for an initial period, making the investment more attractive to investors.
What do crypto traders expect now?
The futures market on Ethereum is currently trading at a premium of 10%, indicating expectations of increases in the asset’s spot price. Furthermore, the put-call ratio, which measures speculator sentiment in the derivatives market, is at 0.27, indicating a strong upside bias.
Despite these positive expectations, the ETH spot price did not show an immediate significant upside. According to many, this could be due to several reasons, such as the presence of previous futures-based ETF products, which would make spot ETFs less competitive. Furthermore, the news of the launch of these investment instruments may not be considered a sufficiently disruptive factor to generate an immediate increase in the spot price.
A look at the ETH/USD chart
From a technical perspective, Ethereum shows some resistance in breaking key price levels despite the good news on the ETF front. Even from a volumetric point of view, there seems to be a lack of volume levels that would make breakouts technically relevant; at the same time, the RSI oscillator on a daily timeframe remains in neutral territory.
- ETH/USD, 1D
- Source: Baha.com
Original article published on Money.it Italy 2024-07-24 09:46:19. Original title: Arriva l’ETF su Ethereum. Cosa succede ora?
