As you may know, last week on Thursday, all of the Ethereum ETFs were approved. The price remained stable and even fell a bit. After all, it’s kind of normal after gaining 20% in a few hours. But in this article, we are going to explain why the Ethereum price is not going up again.
ETFs Approbations
Before starting, it’s important to explain that in order for the ETFs to be launched on the market and for investments to be achievable, two key texts must be approved: the 19b-4s (exchange rule changes) and S-1s (registration statements) :
Source : Twitter (X)
Just as Nate Geraci (President of ETF Store) stated, the SEC has indeed only approved the 19b-4s text but not the S-1s. At least for now, I’m not saying that it will not be approved. It’s only a matter of time before they approve the S-1s, but it may take a few weeks.
Inflows And Outflows
The other important thing to note is that when the approval happens, a lot of outflows will come out of the Grayscale Ethereum Trust (ETHE). And that’s a lot of Ether waiting to be sold on the spot market:
Just like what happened with the Bitcoin ETFs. So that’s why investors want to wait to see the real inflow or not so they can judge if investing in Ethereum is worth it right now or later.
As always thank you for reading !
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Disclaimer : This is not a financial advice, you need to do your own research !
