After the approval of Bitcoin ETFs, Bloomberg expects Ethereum ETFs to follow. How has the market reacted?
These are festive days for crypto enthusiasts, marked by much positive news. Following the approval of Bitcoin ETFs yesterday evening, many now anticipate Ethereum ETFs. This may be why its price has surged in recent hours.
What will happen in the coming days? Will the anticipated spot ETFs on Ethereum in May arrive? Find out all the latest news on this topic in this article!
Ethereum ETFs: Are They Coming Soon?
According to Eric Balchunas, one of the world’s leading ETF experts, there’s a 70% chance that Ethereum ETFs will arrive. This may be why the SEC’s announcement initially positively impacted Ethereum’s price more than BTC. The most capitalised crypto in the market had already partly priced in the event, although in the last hours, it’s recording a +9% increase compared to yesterday.
In any case, the long-term outlook for the entire market is optimistic; the bear market is officially over, and large investment funds are ready to inject significant amounts of money to offer their “brand new” financial instruments.
The first helpful deadline for Ethereum ETFs, which could grant another victory to the crypto world, is May 23rd. We will see if the SEC and its chairman, Gary Gensler, will set aside their reservations about the crypto created by Vitalik Buterin.
The Impact on Charts of ETF Approval
Those expecting a tumultuous price movement immediately after the ETF approval might be disappointed; Bitcoin’s value in the hours following the announcement remained between $44,500 and $47,000. It’s probably because the whole world expected an affirmative response from the SEC. The situation changed after trading on the ETFs began, which recorded more than 2 billion in volumes in a few minutes. Bitcoin has reached nearly $49,000 and now seems intent on reaching the crucial level of $50,000.
However, Ethereum’s rally started earlier. Probably thanks to the words of Bloomberg analyst Eric Balchunas and other commentators on the Ethereum ETFs. The crypto broke through the $2,400 support and reached $2,600 overnight.
The current scenario in which Bitcoin’s price action is placed could further improve thanks to the entry of investment funds. According to estimates by Chartered Bank, BlackRock, VanEck, and Microstrategy, from 40 to 100 billion in the next four years.
The fact that Bitcoin’s price didn’t react super explosively to the announcement could also be an opportunity for retailers, especially those with a strategy to protect themselves from volatility. Our strategy is recurring purchases involving tiny, regular purchases over time; try it in the Moneybox section of our app!
One question remains: when did the trading of ETFs officially begin? These financial instruments are available on three exchanges: The New York Stock Exchange (NYSE), NASDAQ, and the Chicago Board Options Exchange (CBOE).
Trading on the most famous, BlackRock’s iShares Bitcoin Trust listed on NASDAQ, began a few hours ago, while for the Galaxy Bitcoin ETF by Invesco, available on the CBOE, it was already possible to set purchase orders from last night. The volume counter generated by these financial instruments has gone crazy; at the time of writing, more than 2 billion dollars in spot ETFs on Bitcoin have already been traded.
These are all the latest essential news on ETFs on Ethereum and Bitcoin. Continue following our blog so you do not miss any updates.
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