Traders are expressing doubt regarding the assumption that the price of Ether (ETH) will decrease after the introduction of spot Ether exchange-traded funds (ETFs), similar to what occurred with Bitcoin (BTC) when spot Bitcoin ETFs were launched.
In a post on X on May 24, crypto trader Matthew Hyland explained, “I believe there is less chance of a sell-off following the ETH ETF compared to the BTC ETF.” Hyland noted that unlike Bitcoin, Ether did not experience a price decline leading up to the approval of spot Bitcoin ETFs on January 10.
“The BTC ETF did not experience any pullbacks in the months leading up to 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 lost $17.6 billion in assets, according to Farside data.
By May 20, Ether had declined by 15% over two months, until reports suggested that the SEC may have shifted its stance on ETF approvals. Shortly after this news, Ether surged 29% within three days.
As of the time of publication, Ether is trading at $3,752, according to CoinMarketCap data. Ethereum has seen a 110.44% increase over the past 12 months.
However, there are concerns regarding Grayscale’s plan to convert its Grayscale Ethereum Trust (ETHE) to an ETF, which could result in selling pressure and price impact. Hyland stated, “One key similarity is that both have a Grayscale product. The Grayscale ETF led to selling pressure for BTC, and it is likely that we will see the same for the ETH ETF once the product is listed.”
Hyland predicted upward momentum for Ether’s price, as it reached “local highs” of $4,092 in March of this year even without the positive news of spot Ether ETF approval. The year-to-date all-time high occurred just before ETF analyst Eric Balchunas lowered his approval expectations for spot Ether ETFs to 25%.
Similarly, MN trading consultancy founder Michaël van de Poppe expressed uncertainty until the spot Ether ETFs begin trading. He stated, “It is a waiting game until the listing takes place, and then the influx of investors will determine whether there will be a strong continuation upward.”
On May 24, Cointelegraph reported on the widespread commentary regarding the lack of movement in Ether’s price following the SEC’s approval of spot Ether ETFs.
Independent Ethereum educator Sassal argued that “ETH is undervalued,” pointing out that the market had only three days to “price in the ETF approval.”