Ethereum Price Stays Stable Despite ETF Launch

IconCryptoNewsTerminal Staff25 May, 2024

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Ethereum Price Stays Stable Despite ETF Launch

Ethereum ETF Launch Has Minimal Impact on Price The highly anticipated launch of the Ethereum (ETH) spot exchange-traded fund (ETF) has had a muted impact on the price of the cryptocurrency. On-chain analyst Matthew Hyland believes that the market had already priced in the possibility of the ETF's approval, and there was no significant buying pressure or selling pressure following its launch. In contrast, the launch of the Bitcoin spot ETF in October 2021 led to a sharp increase in the price of Bitcoin. However, in that case, analysts say much of the anticipation was priced in leading up to the launch. The price of ETH had declined by about 15% in the two months leading up to the ETF launch, largely due to concerns about a potential rejection. As a result, Hyland believes that the ETH price has already priced in the possibility of a successful ETF launch. It is important to note that the market for cryptocurrencies is volatile, and the price of ETH could change rapidly in either direction. However, the lack of a significant price movement following the ETF launch suggests that the market is not expecting any major changes in the near future.

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