Spot Ethereum ETFs preceded by Bitcoin are finally opening for trading today. While analysts generally state that there will be a buy-the-rumor-sell phenomenon for Ethereum, they cite spot Bitcoin ETFs as an example.
At this point, QCP Capital said that although the ETH ETF launch was long awaited, the market reaction was weak and ETFs did not affect the market and price.
Stating that the reaction of the ETH price to the ETF launch was suppressed, analysts said that investors are waiting to see whether there will be a sell event in ETH ETFs, as in BTC.
Comparing with BTC, analysts noted that Bitcoin fell to $38,000 after the ETF launch, but reached the new ATH two months later.
Stating that the spot market remained dull despite the ETF launch, analysts stated that the options market expects further downward movements in the near term, with the influence of the US Government and Mt Gox news.
Analysts recently noted that with the spot ETH ETF potentially not impacting prices initially and potential selling pressure from the US Government and Mt Gox, spot prices could remain stagnant until the US elections in November.
“The market reaction to the spot Ethereum ETF launch has been muted as investors wait to see if it follows the “buy the rumor, sell the news” model.
For comparison, the Bitcoin price dropped to $38,000 after the ETF launch, but reached the newATH two months later.
While spot prices remain lackluster, the options market paints a different picture. The options market appears to be expecting further downside in the near term, a situation further exacerbated by the US Government and Mt Gox news.
“With the Spot ETH ETF not initially impacting prices and possible selling pressure from the US Government and Mt Gox, prices may remain stagnant until the US elections.”
*This is not investment advice.
