Expected release Ethereum Ethereum
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One analyst said Tuesday that spot exchange-traded fund (ETF) trading may not have been priced in, and that the market could take an unexpected hit from the Ethereum price rally.
“Given the confusion and uncertainty surrounding the launch of a spot Ethereum ETF, it seems like the market is not fully pricing in the impact of the ETF, and gains of 25% or more could easily occur,” Darius Tabai, CEO of on-demand DEX Vertex Protocol and former Merrill Lynch & Credit Suisse trader, told The Block.
Tablay added that if Ether’s rally continues, he expects there to be a potential halo effect for altcoins. “This would be in contrast to the launch of the spot Bitcoin ETF, where altcoins really struggled to sustain bids,” Tablay added.
dot Ethereum The ETF is likely to begin trading on Tuesday, July 23, according to multiple sources, including Bloomberg Intelligence ETF analyst Eric Balchunas. “The SEC finally reached out to the issuer today and asked them to return the final S-1 (including fees) on Wednesday, and to wait until after the close on Monday for a Tuesday 7/23 launch,” Balchunas wrote on X on Monday. After Balchunas told X.com that Tuesday was the launch date, sources at both issuers confirmed the information he relayed to The Block.
Spot Ethereum ETFs Could Still Be Hit by Summer Downturn
There are conflicting opinions on the impact of ETFs on ETH prices. According to YouHodler Risk Manager Sergei Gorev, the launch of spot Ethereum ETF trading may not have the same impact on the market as the spot Bitcoin ETF did in January of this year, when the Bitcoin ETF rose by more than 80% in just two months.
“Ether is still the second most popular coin, and the staking issue has yet to be fully resolved. Many investors will not want to give up the rewards for staking, as staking is currently not available to invest in an Ethereum ETF,” Gorev told The Block.
Gorev added that timing also played a role in the early success of ETF trading. “It’s summer now, a lot of investors are on vacation, and since the summer started, spot volumes have been down 17% on average,” Gorev said.
YouHodler risk manager had one positive factor in contrast to the negative aspects he suggested. He said, “Ethereum is rather a deflationary coin, its volume is slowly decreasing from the total mass, and in addition, Ethereum does not have the pressure of miner sellers that is always present in Bitcoin transactions.”
According to The Block’s price page, Ether’s price has risen more than 10% over the past week, and is trading at $3,396 as of 5:05 a.m. ET.
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