Why Ethereum Price is not Sky Rocketing After Ether ETFs

On 23rd of May,2024 SEC (Security and Exchange Commission) approved the spot Ether ETFs. The introduction of Ether ETFs was expected to catapult Ethereum’s price to new heights, but why hasn’t this happened? We will discuss reasons behind Ethereum’s price stability despite the advent of Ether ETFs.

Market Manipulation

The cryptocurrency market is susceptible to manipulation, given its relatively low liquidity compared to traditional financial markets. Whales, or individuals with large holdings of Ether, can influence prices through coordinated buying or selling, causing artificial fluctuations that may not reflect the true value of the asset.

Institutional Buying

If we see the history Big institution always buys from low, so its understood big companies like Grayscale, Bitwise, iShares, VanEck, ARK 21Shares Invesco Galaxy, Fidelity and Franklin will buy from bottom so they can maximize their profit

Ethereum ETFs vs BTC ETFs

Similar thing happened with BTC ETFs if we the chart BTC price increased pre ETFs approval but there was sudden dump after BTC ETF approved due to institutional buying at the time of ETFs approval BTC was trading around 45k and post ETFs dump it went around 39.5k. We can expect the same fall in price of Ethereum.

Read Also : Why Gary Gensler Opposed Spot Ether ETFs Approval

Disclaimer!!

The information provided by CryptopianNews is for educational and informational purposes only. It should not be considered financial or investment advice. Cryptocurrency markets are highly volatile and speculative, and investing in them carries inherent risks. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.