Expectation of 'Spot ETF' ETH Likely to Absorb Funds from Other Altcoins
CryptoNewsTerminal Staff21 May, 2024
Expectation of 'Spot ETF' ETH Likely to Absorb Funds from Other Altcoins
## Ethereum Spot ETF: A Catalyst for Altcoin Fund Absorption Cryptocurrency news outlet Coindesk reports a growing anticipation for the approval of an Ethereum Spot ETF. This development is expected to attract funds currently concentrated in other altcoins, towards ETH. According to Ilan Solot, Head of Digital Assets at Marex Solutions, "ETH has essentially acted as a funding token throughout this bull market, like the low yielding Japanese Yen. We expect traders will look to balance their ETH shorts and positions in altcoins like SOL. As shorts get squeezed, ETH will likely outperform other altcoins." The potential approval of an Ethereum Spot ETF could have significant implications for the altcoin market. If funds flow out of altcoins and into ETH, it could lead to a decline in the value of these assets. Conversely, the increased demand for ETH could drive its price higher. The crypto market is eagerly awaiting the SEC's decision on the Ethereum Spot ETF. If approved, it could mark a significant milestone in the evolution of the cryptocurrency industry.
