Crypto - Ethereum ETF: Despite approval, price doesn't rise! Why?

The recent approval of Ethereum ETFs has been met with anticipation by the crypto community. However, contrary to expectations, the price of Ether has not seen a significant increase. Here’s why!

Technical and Psychological Factors

After a long wait, Ethereum ETFs were finally approved by the SEC, marking a victory for the crypto industry. However, the price of Ether remains stable, with an increase of barely 1% on its price. Several factors can explain this phenomenon.

Firstly, it is important to understand that the crypto market is influenced by a multitude of technical and psychological factors. The approval of Ethereum ETFs was a widely anticipated event, and it is possible that the price had already factored in this news beforehand, following the logic of “buy the rumor, sell the news.”

Furthermore, the market’s reaction can be compared to that observed during the approval of Bitcoin ETFs. Although positive, it was more moderate than expected. Investors might thus adopt a more cautious approach, having learned from past events.

Crypto: Regulatory Uncertainties on Ether 

Regulatory uncertainties also play an important role. The SEC has shown a cautious approach towards cryptos, and questions still remain regarding the classification of Ether as a security or a commodity, which could affect investment decisions.

Despite this, the approval of Ethereum ETFs is a step forward towards wider acceptance of crypto. It offers traditional investors a regulated and more accessible way to invest in Ether, which could eventually support a price increase.

Rightfully so, several actors in the crypto sector did not miss the opportunity to express their enthusiasm after the announcement of the SEC’s approval. This is the case with Ripple’s CEO, Brad Garlinghouse, who sees this event as “a big moment” for crypto, especially given the ongoing tensions between his platform and the U.S. regulator.

Big momentum in crypto this week – ETH ETF passed and bipartisan support on crypto legislation…

Feels like hell has frozen over!! 🥶 https://t.co/70T0qLt1FH

— Brad Garlinghouse (@bgarlinghouse) May 24, 2024

Finally, while the approval of Ethereum ETFs is a positive development, the crypto market remains complex and unpredictable. Investors must stay informed and cautious, taking into account the multiple factors influencing prices. Time will tell if this approval leads to a sustainable increase in the value of Ether.