Crypto giant Binance evaluated the repercussions in the markets after the US Securities Exchange Commission (SEC)’s approval of spot Ethereum ETFs. The blog post stated that this development could significantly affect the price of the leading altcoin Ethereum and the overall cryptocurrency market. However, despite the excitement of the first day, the market soon began to decline. Ethereum price fell more than 7 percent to $3,190.
There is an expectation of a big jump in altcoin prices
Binance analysts predicted that Ethereum ETFs would also increase the price of ETH by increasing demand, with a similar trend seen in Bitcoin ETFs. With the increasing demand for ETH from institutional investors, a significant increase in prices is expected. This could have a similar effect to the supply contraction previously experienced in Bitcoin ETFs.
On the other hand, analysts noted that the lack of staking features in ETFs could be a problem. Due to SEC regulations, ETF investors will not be able to stake their ETH. This may cause more crypto-savvy investors to choose to buy and stake ETH directly. However, ETFs are seen as a more attractive option for mainstream and institutional investors.
Ethereum is of interest to long-term investors
Binance CEO Richard Teng stated that participation in Ethereum ETFs can provide a stable capital flow over time. However, he noted that there may not be a large inflow initially and macroeconomic factors may affect this flow. Following SEC approval, it is anticipated that these ETFs will generally be invested in by long-term minded institutions.
In conclusion, Binance’s analysis shows that Ethereum ETFs could significantly impact the cryptocurrency market. While a large increase in ETH prices is expected, the lack of staking feature may limit demand. In the long term, a stable capital flow is expected to be achieved with the participation of institutional investors. This development could be the beginning of a new era for both Ethereum and the general cryptocurrency market.
Ethereum declines after ETFs first day of trading
Meanwhile, on the first trading day, significant changes in the Ethereum assets of crypto giant companies such as BlackRock and Grayscale attracted attention. BlackRock’s massive transfer of 76,669 ETH from Coinbase Prime to its Ethereum ETF wallet shows the company’s serious investment intentions in this area. While the company’s total Ethereum assets reached 79,699 ETH, this is considered as part of its strategy to expand Ethereum assets through ETFs.
On the other hand, Grayscale also made significant Ethereum transfers. While he sent 140,044 ETH to Coinbase Prime, he received 4,382 ETH from the same platform. As a result of these movements, there was a decrease of 135,662 ETH in the company’s Ethereum assets. Despite this, Grayscale still has a significant Ethereum stock of 2,489,075 ETH. However, despite the excitement of the first day, the market soon began to decline. Ethereum price fell more than 7 percent to $3,190. Transaction volume also decreased by 20 percent, falling below 20 billion dollars. Its market value is at 383 billion dollars.
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