Ether (ETH), the world’s second-largest cryptocurrency, has fallen below the $3,500 mark, despite positive news surrounding the potential launch of spot Ether exchange-traded funds (ETFs) in the coming weeks.
This price dip comes amidst a 30% surge in trading volume, suggesting increased selling activity. Data from Coinglass reveals $11 million worth of long positions were liquidated following the recent price drop. Additionally, Ethereum’s open interest, which reflects the total amount of outstanding options contracts, has reached $15 billion. This high open interest signifies significant speculative trading activity in the market, with participants closely watching ETH’s price movements.
The price volatility is likely to continue in the lead-up to the potential July 2nd launch of spot Ether ETFs. While some analysts anticipate a price rally similar to Bitcoin’s surge after the launch of spot Bitcoin ETFs, others remain cautious. JPMorgan analysts recently projected that ETH ETFs might attract a mere $1 billion to $3 billion in inflows, a fraction compared to Bitcoin’s $15 billion.
However, there’s optimism surrounding the ETF launch timeline. Bloomberg ETF analyst Eric Balchunas took to Twitter to share his insights, suggesting the US Securities and Exchange Commission (SEC) is nearing the final approval stages for ETH ETFs.
According to Balchunas, the SEC recently sent comments on registration statements to eight Ether ETF applicants. He expects the issuers to respond within a week, potentially leading to a launch date as early as July 2nd.
Also Read: Long-Term Holders Shake Out? Ethereum Price Volatility May Pave the Way for New Investors
This aligns with SEC Chair Gary Gensler’s previous comments during a US Senate hearing, where he mentioned approvals happening “over the course of this summer.” The delayed launch has been a point of discussion, but Gensler assured progress with individual issuers finalizing their registration statements.
The potential launch of spot Ether ETFs is a significant development for the Ethereum ecosystem. While the short-term price movements remain uncertain, the long-term implications for investor participation and mainstream adoption could be substantial.
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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