Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
Home»ETHEREUM NEWS»‘Expect bloodbath’ when spot Ethereum ETF launches: Expert
ETHEREUM NEWS

‘Expect bloodbath’ when spot Ethereum ETF launches: Expert

By Crypto FlexsMay 27, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
‘Expect bloodbath’ when spot Ethereum ETF launches: Expert
Share
Facebook Twitter LinkedIn Pinterest Email

Thomas Fahrer, co-founder of Apollo, a company focused on Bitcoin adoption, issued a stark warning about potential market dynamics following the approval of a spot Ethereum ETF. As the market anticipates this new development, Fahrer suggests that Ethereum’s transition may not be smooth.

“The Grayscale Ethereum Trust launched in 2017 and has amassed most of $9 billion worth of ETH long before staking even existed. These funds are now unlocked. Expect a bloodbath. ETH -> BTC transactions are accelerated. If I’m wrong, hold me accountable. But I doubt it,” Fahrer declared via social media platform X.

Spot Ethereum ETF – “Sell the News” Event?

With the impending approval of a spot Ethereum ETF, similar to the launch of the spot Bitcoin ETF earlier this year, $9 billion (approximately 2.94 million ETH) deposited in the Grayscale Ethereum Trust (ETHE) is expected to be converted to such an ETF. Bitcoin’s historical precedent suggests potential volatility. Following the approval of the Spot Bitcoin ​ETF, Bitcoin lost more than 20% of its value within 12 days due to a significant sell-off due to similar conversions.

Related Reading

One of the main reasons why the spot BTC ETF approval turned out to be a “sell the news” event is because Grayscale switched from the Ethereum Trust to a spot ETF. So far, Grayscale’s Bitcoin Trust (GBTC) has seen over 50% of its BTC holdings leaked. And ETHE may be strengthened by the fact that ETH staking is a profitable option to earn additional profits.

Currently, Grayscale holds over $9 billion of locked Ethereum that cannot be sold or traded until the ETF becomes operational. If approval passes, this large volume of Ethereum could suddenly become liquid, potentially leading to a significant market sell-off if initial demand does not meet the outflow of Grayscale’s new ETF.

Related Reading

Julio Moreno, head of research at CryptoQuant, highlighted important market indicators that may suggest that the market is already starting to react. He said, “It appears the market has already priced the approval of an Ethereum spot ETF. Over the past few days, Grayscale’s discount of ETHE to ETH has decreased significantly. The same thing happened between GBTC and Bitcoin as the Bitcoin Spot ETF gets closer to approval,” Moreno commented via X.

While the short-term impact may reflect the turbulent times seen during the launch of the Bitcoin ETF, the long-term impact on Ethereum may vary. Observers note that despite the initial downturn seen in Bitcoin’s valuation following the ETF, the introduction of spot ETFs was ultimately beneficial, increasing market acceptance and leading to a surge in price.

“BTC rose 75% in 63 days after spot ETF approval. If ETH follows the same trend (if approved) it will be at $6,446 by July 23,” said cryptocurrency analyst Miles Deutscher.

At press time, ETH was trading at $3,676.

Ethereum price, 1 week chart | Source: ETHUSD on TradingView.com

Featured image created with DALL·E, TradingView.com chart

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

$ 500m liquidation Rock Ethereum and Bitcoin: Do the collisions fuel to the whale accumulation?

August 19, 2025

Ether Leeum can increase to $ 15 million as the institution accumulates: Study

August 15, 2025

Is Alt Season finally here, just as Ether Lee’s tearing and a small cap follows?

August 11, 2025
Add A Comment

Comments are closed.

Recent Posts

Since the leakage is not over, the price of Stellar (XLM) is faced with a fall.

August 21, 2025

2025-26 discussions about which coins will be ranked first in Memecoin Cycle

August 21, 2025

Buyback And Burn Of $MBG Unveiled As MultiBank Group Posts $209M H1 Revenue

August 20, 2025

Cointel Raises $7.4M In Strategic Round Led By Avalanche And Sugafam Inc.

August 20, 2025

Inspired By Pepe – Ethereum L2 Layer Brett Hits $700K In Presale

August 20, 2025

Resupplyfi Nuclear Analysis -Ackee Blockchain

August 20, 2025

MetaWin Announces $1.3 Million NFT Holder Exclusive Giveaway

August 20, 2025

OpenServ Names Joey Kheireddine Head Of Blockchain, Joining From Eliza Labs (formerly AI16z)

August 20, 2025

Ethereum-Based Project Pepeto Surpasses $6.3M In Presale As Ecosystem Development Advances

August 20, 2025

Bossjob’s Twin Engine Strategy Revolutionizes Talent Acquisition At Tokyo WebX Summit

August 20, 2025

1inch Pioneers Solana Cross-chain Swaps, Unlocking Seamless Interoperability

August 19, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Since the leakage is not over, the price of Stellar (XLM) is faced with a fall.

August 21, 2025

2025-26 discussions about which coins will be ranked first in Memecoin Cycle

August 21, 2025

Buyback And Burn Of $MBG Unveiled As MultiBank Group Posts $209M H1 Revenue

August 20, 2025
Most Popular

NFT tax loss yields surge as year-end deadlines approach.

December 31, 2023

ETF: A Catalyst to Connect Traditional Finance and Web3 Adoption

August 22, 2024

Analysts say Bitcoin options put-call skewness remains bullish ahead of the June quarter expiration.

June 25, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.