Ethereum’s price has shown a lackluster performance in the wake of the U.S. Securities and Exchange Commission’s (SEC) approval of 19b-4 filings for multiple spot Ethereum exchange-traded funds (ETFs). In the last 24 hours, the price of Ethereum has remained relatively stable, hovering around $3,692 per unit. Since the SEC approvals, the value of Ethereum has dropped by 2.3% in U.S. dollars, but it has still experienced a gain of over 21% over the past week.
It’s important to note that the approval of the 19b-4 filings is only the beginning of the process, according to James Seyfarrt. The ETFs will not start trading immediately, as there is still a need for approval on the S-1 documents, which could take several weeks or longer. The market is eagerly awaiting more information on this matter.
Currently, Ethereum is trading at a value that is more than 23% below its all-time high (ATH) of $4,878 per coin, which was reached on November 10, 2021. However, it is worth noting that Ethereum has come closer to its ATH compared to a week ago when it was 36.6% below its peak. Some market observers speculate that there could be an increase in value once the Ethereum ETFs are listed and start drawing Ethereum from the market.
In addition to the ETFs, the Grayscale Ethereum Trust (ETHE) has been trading at a discount for quite some time. However, there has been a significant improvement in the discount to net asset value (NAV) of ETHE, which currently stands at only 5.59%. This situation is similar to that of GBTC, suggesting that ETHE might experience substantial reductions in its reserves due to significant outflows of Ethereum.
If the demand from other Ethereum ETFs fails to counterbalance these potential outflows, ETHE could exert downward pressure on the Ethereum market. The impact of these ETFs on the Ethereum spot market remains to be seen once they successfully navigate the S-1 process and become listed.
What are your thoughts on Ethereum’s market performance following the SEC’s approval of spot Ethereum ETFs? Please share your opinions in the comments section below.
