ETH Slows Amid ETF Uncertainty; $120M Withdrawn in Fortnight
The Essentials in Brief
Ethereum (ETH) is experiencing a slowdown amidst ongoing uncertainties regarding the introduction of Ether-based Exchange Traded Funds (ETFs). Over the past two weeks, investors have withdrawn $120 million from ETH-focused investment products. The launch of Ether Spot ETFs in the US is being delayed after the SEC has requested issuers to submit revised drafts. Despite the challenges, there remains hope for positive development that could arise from the market introduction of these products.
Ethereum in Focus: Current Market Developments
Ethereum struggled again with resistance at $3,520 as the market prepares for the potential introduction of Ether Spot ETFs. Although ETH briefly rose above $3,450, recent pullbacks contributed to the cryptocurrency having difficulty recording significant gains. The institutional uptake of Ethereum also showed a slowdown, with significant outflows from ETH investment products in recent weeks.
Delays in the Introduction of Ethereum Spot ETFs
The introduction of Ether Spot ETFs in the US has been delayed after the Securities and Exchange Commission (SEC) has demanded issuers to submit revised S-1 drafts. These delays could push the market introduction of the products back to mid or late July. Analysts have mixed opinions about how these ETFs will be received, with some predicting lower demand compared to Bitcoin ETFs, mainly due to the lack of a staking function in the approved Ether ETFs.
Market Expectations and Forecasts
Despite the challenges, there are positive expectations regarding the long-term effects of the introduction of Ether Spot ETFs. Analysts at J.P. Morgan estimate that Ether ETFs could see net inflows of about $3 billion by the end of the year. In addition, the immediate market uptake could be slightly negative as investors may take profits they have made in anticipation of the conversion of the Grayscale Ethereum Trust into an ETF.
Our Assessment
The slowdown of Ethereum and the delays in the introduction of Ether Spot ETFs are undoubtedly challenges that can lead to uncertainties in the market in the short term. In the long term, however, these ETFs, once introduced, could represent a significant development for Ethereum by offering institutional and private investors a new access route. It remains to be seen how the situation develops, but the prospects for Ethereum and its acceptance at the institutional level remain promising.
Source references: AMBCrypto, CoinShares, Coinglass, J.P. Morgan
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Price | $3,361.45 |
| 24h % | 7.88 % |
| 7d % | 5.83 % |
| 30d % | 27.84 % |
| 60d % | 30.89 % |
| 1y % | 67.80 % |
| Market Cap | $404,638,989,271.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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