Ethereum Dips 4% After Historic ETF Approvals

Ethereum dropped 4% immediately following the historic U.S. approval of spot Ethereum exchange traded funds (ETFs) yesterday.

Many believed that the passing of spot ETFs in the U.S. would be a bullish event for the second largest crypto currency in the world. And it still might be. But in the hours that followed the approval by the U.S. Securities and Exchange Commission (SEC), Ethereum’s price barely budged—moving up just 1%.

At the time of the approval, Ethereum was sitting at $3,840 but is now down 3.6% to $3,701, according to CoinGecko. This drop is even more pronounced over the past 24 hours dropping 6% from $3,926, as news of the approval began to circulate.

This is a typical display of “buy the rumor, sell the news” as Ethereum’s price spiked 9% in the minutes that followed rumors that an ETF approval was imminent. Now the news has been confirmed, the market has begun to sell off.

Bitcoin saw similar action after the approval of spot Bitcoin ETFs in January. The morning after the approval Bitcoin plunged about 6% and then dived 12% over the coming week. All told, BTC didn’t make it back to the price it was on the day the ETFs were approved until after a full month of volatility.

Bitcoin Plunges 12% in 7 Days as BlackRock Collects $1.1 Billion From ETF

The historic arrival of Bitcoin exchange-traded funds (ETFs) to Wall Street has been the talk of the crypto world since traditional finance titan BlackRock filed its application for the investment product last June.  After finally getting approval last week and starting trading, BlackRock is doing well: its iShares Bitcoin Trust (IBIT) is now sitting on over $1 billion in assets under management. It is the first spot crypto ETF to cross that threshold.  “We are excited to see IBIT reach this mil...

But when it did, it started a steady hike to a new all-time high as volume from the 10 spot Bitcoin ETFs flowed into the market.

British multinational bank Standard Chartered predicted that both ETH and BTC will rocket upwards after Ethereum ETFs were approved.

Bitcoin, Ethereum Will Hit All-Time Highs Amid ETH ETF Approval: Standard Chartered

Ethereum (ETH) exchange-traded funds will get approval from the Securities and Exchange Commission this week, Standard Chartered believes—and the prices of both ETH and Bitcoin (BTC) will rocket upwards as a result. The British multinational bank’s digital assets researcher Geoff Kendrick wrote Tuesday that if the SEC approves ETH exchange-traded funds (ETFs) on Thursday, as expected, the price of the asset could rocket—and hit $8,000 by the end of the year.  ETH is currently trading at $3,770,...

“An ETH ETF approval will further legitimize the sector and therefore be BTC-positive as well,” Geoff Kendrick, digital assets researcher at Standard Chartered, said adding that he “would expect a fresh all-time high in BTC by the weekend.”

If it’s going to happen for Bitcoin, it might not be any time soon. BTC is currently down 3.5% over the past 24 hours.

Edited by Stacy Elliott.