Crypto traders are buzzing with anticipation after the long-awaited launch of spot Ether ETFs in the United States. Despite a muted initial price response, analysts and investors remain overwhelmingly bullish on Ethereum’s (ETH) future. They believe the easy availability of Ether through these ETFs will propel the cryptocurrency to new highs in the coming months.
The US Securities and Exchange Commission’s (SEC) approval for spot Ether ETFs, including those from industry giants like BlackRock and Fidelity, sent shockwaves through the crypto market. Within minutes of trading on July 23rd, these ETFs witnessed a staggering volume of $120 million, exceeding expectations.
“Heavily Undervalued” – Traders Eye All-Time Highs
Michaël van de Poppe, a prominent crypto trader, believes the significance of the launch is vastly underestimated. He predicts Ether’s price surging towards its all-time high (ATH) within the next 1-2 months, fueled by the newfound accessibility offered by spot ETFs.
While initial inflows are considered “decent” by Daan Crypto Trades, another prominent trader, he anticipates a period of heightened volatility in the crypto market surrounding the ETF launch. He emphasizes the importance of Ether overcoming key resistance levels to sustain a bullish trend.
Buckling Up for a Wild Ride
Crypto investor Alessa Mutto echoes the bullish sentiment, expressing her belief in a parabolic rise for crypto and ETFs in the coming years. However, she acknowledges the crucial role of sustained spot Ether inflows in determining the long-term price trajectory.
Data compiled by Bloomberg suggests early success for spot Ether ETFs. Within 90 minutes of trading, the combined volume reached an impressive $361 million. While this falls short of the record-breaking volume witnessed during the launch of spot Bitcoin ETFs in January, it still surpasses expectations for a traditional ETF launch.
The Bitcoin Precedent
The phenomenal success of US-based spot Bitcoin ETFs, with a cumulative trading volume of $300 billion in their first six months, serves as a positive precedent for the newly launched Ether ETFs. With total assets under management exceeding $62 billion for Bitcoin ETFs, investors are hopeful for a similar trajectory for Ether.
The launch of spot Ether ETFs marks a significant milestone for the cryptocurrency, potentially opening the door to a wider investor base. While the immediate price impact remains to be seen, the overwhelming bullish sentiment suggests a bright future for Ethereum. The coming months will be crucial in determining whether Ether can indeed reach new highs, fueled by the increased accessibility and potential surge in demand brought about by these innovative financial instruments.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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