Traders are skeptical about assuming that the price of Ether (ETH) will decline after the launch of spot Ether exchange-traded funds (ETFs), similar to what happened with Bitcoin (BTC), after spot Bitcoin ETFs started trading.
“I think there is less likelihood of a selloff here after the ETH ETF compared to the BTC ETF,” crypto trader Matthew Hyland explained in a May 24 post on X.
Hyland pointed out that unlike Ether, Bitcoin had not experienced a price decline in the period leading up to the approval of spot Bitcoin ETFs on Jan. 10.
“The BTC ETF had no pullbacks in the months leading into it. The selling pressure began when the Grayscale ETF was listed the following day,” Hyland added. Since the launch of spot Bitcoin ETFs, Grayscale Bitcoin Trust (GBTC) has shed $17.6 billion in assets, as per Farside data.
Ether had declined by 15% over a two-month period by May 20, up until reports suggested the SEC may have pivoted its stance toward ETF approvals, Ether then surged 29% shortly after the news within three days.
At the time of publication, Ether is trading at $3,752, as per CoinMarketCap data.
Although, there have been concerns about Grayscale's plans to convert its Grayscale Ethereum Trust (ETHE) to an ETF, potentially resulting in selling pressure and price impact.
"One key similarity is both have a Grayscale product. The Grayscale ETF lead to selling pressure for BTC, likely will see the same for the ETH ETF once the product is listed," Hyland stated.
Hyland predicted upward momentum for Ether’s price however, as it reached "local highs" of $4,092 in March this year without the positive news of spot Ether ETF approval. In fact, this price came not long before ETF analyst Eric Balchunas dropped his approval hopes for spot Ether ETFs to 25%.
Related: Ethereum rally stalls at $3.8K — Is SEC ETH ETF decision already priced in?
Meanwhile, MN trading consultancy founder Michaël van de Poppe echoed a similar sentiment of uncertainty until the spot Ether ETFs actually start trading.
“It's a waiting time until the listing takes place, and then the inflow will provide whether there's a strong continuation upwards,” van Pope declared in a May 24 X post.
On May 24, Cointelegraph reported on the widespread commentary regarding the lack of movement in Ether’s price following approval of spot Ether ETFs from the SEC on May 23.
Independent Ethereum educator Sassal declared that “ETH is stupidly undervalued,” arguing that the market has had only three days to “price in the ETF approval.”
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