The price of Ethereum has regained momentum after a volatile trading period, with prices rising recently on the back of rising expectations following the surprise approval of a spot Ethereum ETF by the U.S. Securities and Exchange Commission.
Moreover, this regulatory approval has led to huge inflows into Ethereum exchange-traded products around the world, raising concerns about the viability of this bullish trend.
Following the SEC approval, ETH saw record inflows.
According to Coingape, Ethereum saw a massive inflow of $40 million into existing exchange-traded products last week, the largest inflow of Ethereum since March. Leading cryptocurrency research firm CoinShares released a report highlighting this new trend.
Notably, the surge can be attributed to the SEC’s unexpected decision on May 23 to allow eight US issuers to launch spot Ethereum ETFs. As evidenced by the latest market movements, this move has significantly boosted market optimism.
Meanwhile, the approval process is still ongoing. The 19b-4 form has been approved, but the S1 form is still pending review. Once all is said and done, these exchange-traded funds (ETFs) will be able to trade on the stock exchange, which could have a further impact on the price of Ethereum.
This surge in investment reflects growing confidence among investors themselves. Heavy inflows into a US spot Bitcoin ETF had a similar impact on the market this year, suggesting that the market is now anticipating a similar scenario with Ethereum. As the Ethereum ETF nears its trading launch, optimism continues to grow among investors.
Ethereum price and possible future performance of Bitcoin
The recent inflows have sparked a debate about the potential impact on Ethereum price. Analysts are currently debating whether the momentum will be sustained or if it is merely a temporary reaction to the regulatory news. Meanwhile, the $40 million increase is evidence of the market’s strong interest and confidence in Ethereum’s future performance.
Meanwhile, many argue that the road to continued growth is fraught with obstacles. It is important to note that while the SEC is moving forward with the approval process, it is not yet complete.
Ark CEO Cathie Wood said the recent regulatory approval of Ethereum ETFs is mainly due to the approaching US presidential elections and the widespread pro-crypto sentiment that could affect the election results. As the S1 forms are still under review, actual trading of these ETFs may not start for several weeks. In the short term, this delay could affect investor sentiment and price stability.
At the time of writing, Ethereum price is trading at $3,783.37, up 1.45%, after hitting a 24-hour high of $3,823.64. The second-largest cryptocurrency by market cap is up about 25% on the month, as well as up about 3% on the week.
According to statistics provided by CoinGlass, Ethereum futures open interest increased by 1.45% to $16.7 billion, while options open interest increased by 1.63% to $6.38 billion. It should be noted that the increase in open interest also reflects the optimism currently prevalent in the market.
Additionally, recent ScopeScan research suggests that Ethereum whales are showing increased activity, raising the possibility of further bullish momentum for ETH prices. According to the article, Ethereum whales withdrew 4,200 Ether today, which is estimated to be worth $15.8 million.
Additionally, the same whale has accumulated 8,300 Ether over the past three days, which is worth about $31 million. According to the report, this accumulation comes at the same time as the U.S. Securities and Exchange Commission (SEC) approved an Ethereum exchange-traded fund (ETF), indicating that large investors are becoming quite bullish on the market.
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