One trader described ether’s sell-off on positive news as typical “buy the rumor, sell the fact” behavior.
Despite the approval of several ether exchange-traded funds for listing in the U.S., both Bitcoin (BTC) and ether (ETH) prices have declined in the past 24 hours. Ether, which had surged over 20% in the past week, dropped 4% following the approval, turning the event into a “sell the news” situation. However, traders anticipate a significant influx of institutional capital into the ether market in the long term.
Bitcoin (BTC) and ether (ETH) prices declined over the past 24 hours, despite the approval of several ether exchange-traded funds (ETFs) for listing on U.S. exchanges. According to CoinGecko data, ether has dropped 4% since the approval, after having risen 20% over the previous week amid anticipation and improved odds of the ETFs gaining approval.
The U.S. Securities and Exchange Commission (SEC) approved key regulatory filings for ether ETFs on Thursday, marking a historic milestone for the second-largest cryptocurrency. However, these ETFs are not yet cleared to trade. While the SEC approved the 19B-4 form, which permits the offering and listing of ETFs, the funds’ S-1 filings must still be approved before investors can purchase them.
The SEC approved documents for eight ETFs from VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy, and BlackRock, for listing on the Nasdaq, NYSE Arca, and Cboe BZX exchanges. If these ETFs are approved for trading, a significant influx of institutional capital is anticipated, with Standard Chartered predicting inflows of up to $45 billion in the first 12 months.
Some traders expect ether to rally over 60% in the coming months, citing a marked increase in futures and spot buying demand for the token in the past week.