Outside Source
Ethereum prices dropped more than 3% from an intraday high of $3,540 on July 22 to a low of $3,425 during the Tuesday morning Asian trading session.
They have recovered slightly since but analyst ‘Kaleo’ predicted that there is a “high likelihood we see some type of pullback after the spot ETF launches.”
He predicted that the asset would drop below $2,800 in a range low before the inevitable price discovery.
Still see there being a high likelihood we see some type of pullback after the spot ETF launches.
We’re still early enough into this bull market that shorting is a greedy play if you’re giga-bullish on a higher time frame (ETH hasn’t even touched a new ATH… pic.twitter.com/iitD2l7QCe
— K A L E O (@CryptoKaleo) July 22, 2024
Ethereum ETF Launch
On July 22, the Securities and Exchange Commission officially approved the listing of multiple spot Ethereum ETFs. ETF issuers are making final adjustments before their products are launched for trading in the United States on July 23.
CEO and founder of Intuition, an Ethereum-based data authentication protocol, Billy Luedtke, commented: “The approval of the ETH ETF marks a significant milestone, legitimizing Ethereum and providing a gateway for institutional investors to participate.”
Meanwhile, Coinbase stated that by increasing usage of Ethereum, “spot ETH ETF investors will help advance Ether’s utility and contribute to the development of the overall crypto ecosystem.”
Bloomberg’s senior ETF analyst Eric Balchunas observed that the Ethereum ETF race has already begun with a transfer from the Grayscale ETHE fund to its mini-fund ‘ETH’ on July 23.
The Grayscale Ethereum Mini Trust will start with $1 billion in assets and a category-low 15 basis point fee. “That’s a new variable in this race that we didn’t have in the BTC [ETF] race,” he added.
Existing ETHE shareholders will receive a proportional distribution of shares in its new Mini Trust on July 31.
Eth ETF race has already begun w/ a transfer from $ETHE to its mini-me = $ETH gonna begin its life w/ $1b and a category-low 15bp fee. That’s a new variable in this race that we didn’t have in btc race. https://t.co/7v6kh8Kw5Q
— Eric Balchunas (@EricBalchunas) July 22, 2024
On July 22, the world’s largest asset manager, BlackRock, issued a statement on Ethereum and its new iShares Ethereum Trust ETF (ETHA), which was a big endorsement of the asset that read:
“Ethereum’s appeal lies in its decentralized nature and its potential to drive digital transformation in finance and other industries.”
Here’s BlackRock’s Ether pitch to normies via @JayJacobsCFA: “While many see bitcoin’s key appeal in its scarcity many find ethereum’s appeal in its utility.. you could think of ethereum as a global platform for applications that run without decentralized intermediaries” $ETHA pic.twitter.com/ffyglfSTiB
— Eric Balchunas (@EricBalchunas) July 22, 2024
Moreover, rival asset managers are already rolling out their ETH ETF advertisements. On July 23, Bitwise posted an ad for its prospectus stating that it will donate 10% of the Bitwise Ethereum ETF (ETHW) profits to Ethereum open-source protocol development.
ETH Price Outlook
Ethereum was trading down 1.5% on the day at $3,484 at the time of writing. The asset has only managed to return to resistance at around $3,500 during last week’s rally and couldn’t get near its 2024 high of just over $4,000 back in March.
However, if price action mirrors that of BTC, there could be a new all-time high for ETH a few months after the ETFs have been trading.
This article first appeared at CryptoPotato
