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Traders Cautious About Ether’s Price Movement Post Spot ETF Launch Despite Bitcoin’s Previous Downturn

Traders are cautious about assuming Ether‘s price will decline following the launch of spot Ether exchange-traded funds (ETFs), unlike what occurred with Bitcoin after spot Bitcoin ETFs began 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 noted that, unlike Ether, Bitcoin didn’t see a price drop before the approval of spot Bitcoin ETFs on January 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, the Grayscale Bitcoin Trust (GBTC) has lost $17.6 billion in assets, according to Farside data.

Ether had declined by 15% over two months by May 20. However, after reports suggested the SEC might approve ETFs, Ether surged 29% within three days.

At the time of publication, Ether is trading at $3,752, according to CoinMarketCap data.

Concerns remain about Grayscale’s plans to convert its Grayscale Ethereum Trust (ETHE) to an ETF, potentially causing selling pressure and affecting the price.

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“One key similarity is both have a Grayscale product.

The Grayscale ETF led to selling pressure for BTC, likely will see the same for the ETH ETF once the product is listed,” Hyland stated.

Despite this, Hyland predicted upward momentum for Ether’s price, noting it reached “local highs” of $4,092 in March without the positive news of spot Ether ETF approval.

The year-to-date all-time high came shortly before ETF analyst Eric Balchunas reduced his approval hopes for spot Ether ETFs to 25%.

Meanwhile, MN trading consultancy founder Michaël van de Poppe expressed similar uncertainty until spot Ether ETFs 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 de Poppe stated in a May 24 X post.

On May 24, Cointelegraph reported widespread commentary on Ether’s price stability following the SEC’s approval of spot Ether ETFs.

Independent Ethereum educator Sassal declared that “ETH is stupidly undervalued,” arguing the market had only three days to “price in the ETF approval.”

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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