Monday, July 15, 2024
HomeBlogEther slips after SEC opens the door to ether ETFs, but still...

Ether slips after SEC opens the door to ether ETFs, but still posts best week in more than a year

The price of ether fell on Friday, despite the Securities and Exchange Commission’s approval of a regulation change allowing exchange-traded funds to acquire and retain it.

Ether’s price declined roughly 1% to around $3,745, according to Coin Metrics. It increased by more than 20% this week, marking its highest week since March 2023.

“Today’s market behavior appears more like a pause as investors digest recent gains and assess the impact of external economic factors, such as the recent rate sell-off,” said Rachel Lin, CEO and co-founder of SynFutures, a decentralized derivatives trading platform. “This pause likely also reflects a cautious approach given the ongoing uncertainty about the timeline for regulatory approvals, such as S-1 filings.”

Coinbase, a possible beneficiary of ether ETFs, increased by more than 8%, while Robinhood gained 6%.

While both firms offer cryptocurrency trading, Coinbase may benefit more from the introduction of ether ETFs since it provides a broader range of crypto services, such as custody and staking, as well as a greater assortment of tradeable assets. Coinbase also runs a blockchain called Base, which is built on the Ethereum network.

Alex Saleh, head of partnerships at blockchain protection firm Coincover, also noted it’s still unclear when the new products will hit the market, and which players will participate.

“This uncertainty makes it difficult to predict any changes in demand that will lead to further price discovery,” he stated. “Calls by major industry players that this confirms ether’s status as a commodity are also introducing further market uncertainty, with many investors waiting to see the regulatory outcome of the commodities versus securities debate.”



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments