Ethereum’s upcoming spot exchange-traded funds (ETFs) are causing skepticism and doubt among traders, unlike Bitcoin which generated excitement in the market. Traders are cautious and uncertain whether Ethereum will follow Bitcoin’s path or face challenges on its own.
By May 20, Ether had already declined by 15% in a span of two months. However, when rumors began circulating that the SEC might approve Ethereum ETFs, Ether experienced a 29% surge in just three days. As of now, according to data from TradingView, it is trading at $3,755.
Crypto trader Matthew Hyland expressed his thoughts on the matter, stating that there is less likelihood of a selloff in Ethereum after the ETF listing compared to Bitcoin. Unlike Ether, Bitcoin did not experience a price decline before the approval of its spot ETFs on January 10.
Farside also shares a similar view, mentioning that since the launch of spot Bitcoin ETFs, Grayscale Bitcoin Trust (GBTC) has lost $17.6 billion in assets. Analyst Michaël van de Poppe also believes that it is a waiting game until the listing takes place, and the inflow will determine if there will be a strong upward continuation.
There are concerns regarding Grayscale’s plans to convert its Ethereum Trust (ETHE) into an ETF. This move could potentially lead to selling pressure and impact Ether’s price. Hyland stated that the Grayscale ETF led to selling pressure for BTC and the same could happen for the ETH ETF once it is listed.
Despite the concerns, Hyland predicts a bullish outlook for Ether’s price. He points out that Ether reached local highs of $4,092 in March without any news of spot Ether ETF approval. The highest price of the year came just before ETF analyst Eric Balchunas reduced his approval hopes for spot Ether ETFs to 25%.
One major issue for Ethereum is its messaging. Unlike Bitcoin, which is often referred to as “digital gold,” Ethereum lacks a simple and catchy phrase to attract investors, particularly those from the baby boomer generation. Analyst James Check mentioned this in a post, noting that despite years of attempts, Ethereum still lacks an elevator pitch.
ETF analyst Eric Balchunas from Bloomberg also agrees, stating that Ethereum does not have a straightforward selling point that investment managers can easily present to older investors. He emphasized that “Bitcoin is digital gold,” while the message for Ethereum is not as clear.
Various individuals in the crypto industry have proposed their own pitches for Ethereum. Adam Cochran, a partner at Cinneamhain Ventures, described Ethereum as “digital oil,” highlighting its role as the fuel for decentralized protocols. He emphasized that Ethereum is productive and yield-bearing.
This article was originally reported by Jai Hamid for Cryptopolitan.