ETH Spot ETF Approval Hopes Fade: Ethereum Futures Market Sentiment Weakens
CryptoNewsTerminal Staff04 Jun, 2024
ETH Spot ETF Approval Hopes Fade: Ethereum Futures Market Sentiment Weakens
Ethereum Spot ETF Hopes Dim, ETH Perpetual Futures Market Loses Optimism Cointelegraph reports waning optimism in Ethereum's perpetual futures market as the anticipated US spot ETF approval falters. Despite the SEC's initial approval of a rule change for an ETH spot ETF, delays in product launch and trading are dampening sentiment. The SEC's unpredictable S-1 approval process and political motivations behind the ETH spot ETF have led to declining funding rates in the perpetual futures market. This indicates a shift away from the initial bullishness surrounding the ETF's potential approval. Additionally, concerns about Grayscale's ETHE conversion to an ETF and its high management fees raise further doubts. Cointelegraph suggests that continuous fund outflows could occur, similar to what was observed with GBTC. As the ETH price hovers near the $3,900 resistance line, uncertainty lingers over the timing and approval of the spot ETF. This has led to a weaker outlook in the Ethereum futures market, reflecting diminishing optimism among traders.
