The approval of spot Ethereum-ETFs has had a “muted” impact on the market, as investors anticipated a “buy the rumor, sell the news” scenario, according to analysts at QCP Capital.
Experts noted that after the launch of similar Bitcoin-based products, its price fell from $46,000 to $38,000, but reached record highs two months later.
QCP Capital highlighted the recent movement of 42,587 BTC (~$2.85 billion) by the Mt.Gox exchange, as well as the transfer of 58.74 BTC (~$3.96 million) to Coinbase Prime from a U.S. government address.
“Since spot ETH-ETFs likely did not influence prices from the outset, combined with potential pressure from U.S. authorities and Mt.Gox, quotes may remain low until the election momentum picks up,” the analysts noted.
While spot prices remain low, the options market presents a different picture. According to QCP Capital, implied volatility on July 26 increased by 8%, while the risk-reward ratio decreased by 3%. This indicates investor caution and a possible correction.
Bloomberg analyst Eric Balchunas stated that Ethereum-ETF will still benefit the market.
Regardless of your feelings about ether or crypto, this kind of first class TradFi treatment (translating benefits into Boomer-ese and and delivering it in the most preferred inv vehicle on Planet (the ETF) is a major deal. These issuers have over $15T in collective aum. pic.twitter.com/uXR1AL1BxX
— Eric Balchunas (@EricBalchunas) July 22, 2024
“Regardless of your attitude towards ETH or cryptocurrency, such a first-class approach to TradFi. […] The issuers [of spot funds based on the second-largest cryptocurrency by market cap] have over $15 trillion in collective assets under management,” he emphasized.
Previously, Standard Chartered’s Head of Research Geoffrey Kendrick suggested a new phase for exchange-traded funds in 2025. In his view, SOL and XRP are next in line.
On July 8, Cboe BZX filed form 19b-4 for 21Shares Core Solana ETF and VanEck Solana Trust. According to Balchunas, the instrument could appear in mid-March 2025.