Ethereum (ETH) price. It failed to achieve any significant rise after the approval of the Securities and Exchange Commission (SEC). Ethereum ETFs. This is undoubtedly surprising, given that the approval was expected to lead to a massive rise in the prices of the second largest cryptocurrency token.
Why ETH price failed to rise
The price of Ethereum may have failed to rise because the crypto token was already priced in on the news regarding its potential approval. It is worth noting that the price of ETH It increased by approximately 20% Earlier this week when Bloomberg analysts said Eric Balchunas And James Seyphart Their odds of agreeing increased from 25% to 75%, indicating that agreement was more likely.
So, this could have turned into Typical “news selling” eventWith many traders currently taking profits from their previous investments in ETH. NewsBTC reported that Ethereum whales purchased more than 110,000 ETH ($341 million) between May 19 and 20, positioning themselves ahead of any news regarding the potential approval of these funds.
Meanwhile, historically, this could have been expected from the price of ETH, considering that Bitcoin (BTC) saw a significant decline after… Approval of spot bitcoin ETFs.
However, it should be noted that unlike Bitcoin ETFs, which started trading immediately, these Spot Ethereum ETFs Trading will not start just yet. The SEC has only approved exchange filings (19b-4s) and will still have to approve registration filings (S-1s) for these funds to begin trading.
The fact that Ethereum ETFs will not start trading yet may be another reason why the ETH price does not react favorably to this development. As such, registration requests may need to be approved, which could take weeks or months, to trigger another rally Ethereum and other altcoins Extensively.
The main positive thing is that ETH is up over 28% in the last 7 days, which is huge considering that the crypto token has been delayed for a while now and has failed to align with other major crypto tokens.
Another reason to be optimistic about Ethereum
The approval of Spot Ethereum ETFs is a clear signal that the SEC is not taking them into consideration ETH securityunlike before Reports The Committee may have had this belief for some time now.
TuongVy Le, General Counsel at Anchorage Digitalmarked with an X (formerly Twitter) mail Funds whose assets are 40% or more securities may register not through Form S-1 but through Form N-1A or N-2.
Therefore, if the SEC considered ETH a security, it would have rejected S-1 filings made by various fund issuers such as Black stone Because this Ethereum ETFs It will keep ETH as its main asset.
At the time of writing, ETH is trading at around $3,803, according to Data From Coin Market Cap.
Featured image created with Dall.E, chart from Tradingview.com