Ethereum's achievement on ETFs.

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Written by

BCH is Cash, blogger , humble human

1 month ago

In community: Dream bigger(3fc3)

Are you involved, interacted or learned about recent approval of Ethereum exchange-traded funds, or ETFs, and its impact on the cryptocurrency market?

Well, here is my experience. What I learned, may be it is mistaken or wrong. Some one expert of crypto finance can guide in better Way.

First, let's me explain what an ETF is. It's a type of investment fund and exchange-traded product that holds assets such as stocks, bonds, or commodities. ETFs are designed to track the performance of a specific index, sector, commodity, or asset.

The recent approval of Ethereum ETFs marked a significant milestone in the cryptocurrency market. This approval allows for broader investor access to Ethereum through traditional financial instruments, potentially attracting more conservative investors.

However, it seems the demand for Ethereum has been lacking post the launch of spot Ether ETFs. The price failed to surpass the $3400 resistance level and is down 4.5% since the ETFs' introduction. Factors such as outflows from Grayscale, declining exchange withdrawals, and decreasing Coinbase Premium Index have contributed to this lack of demand.

In contrast, when Bitcoin ETFs were launched, Grayscale's Bitcoin Trust experienced faster outflows compared to its Ethereum Trust post-Ethereum ETF launch. This suggests that the Ethereum ETFs have not had as much of an impact on the market as Bitcoin ETFs did. From January 10, 2024 , after approval of Bitcoin ETFs , they served a huge impact and generates stunning products like IBIT, YBTC and BITO.

Despite this, Ethereum has experienced a surge in open interest, indicating growing trader interest and confidence. The approval of Ethereum ETFs has contributed to this momentum, along with a spike in the Ethereum futures funding rate.

This increase suggests a strong demand for long positions and a bullish sentiment towards Ethereum. Although some ETFs on Ethereum surge on good escalation like BlackRock's ETHA , Bitwise’s ETHW , Fidelity’s FETH and Templeton’s EZET. But overall didn't made what were expectations.

Overall, the approval of Ethereum ETFs has brought about a shift in the cryptocurrency market. While it has not had as significant an impact as Bitcoin ETFs, it has still brought about a positive outlook for Ethereum in the market.

As for whether Solana will follow Ethereum in the ETFs race,

only time will tell But the track record showing that Solana will never see the only two ETFs holders. They will jump in but when , I can't say anything until official announcement not appear. One thing is certain though, the prime role of ETFs is to provide broader investor access to cryptocurrencies through traditional financial instruments.

Conclusion.

The recent approval of Ethereum ETFs has brought about a shift in the cryptocurrency market. While the impact has not been as significant as Bitcoin ETFs, it has contributed to a surge in open interest and a bullish sentiment towards Ethereum.

Whether other cryptocurrencies like Solana will follow suit remains to be seen. Thank you for joining me on this exploration of Ethereum ETFs and their impact on the cryptocurrency market.