Do you want to swallow the blue pill or the red pill? The crypto fraternity weighed in favor of the red pill and here we have the Bitcoin ETF live and exploding. What’s the result? In the last 3 days ever since the passing of the ETF, more than 21,000 BTCs have been pumped into the crypto space at a staggering amount of $894 million. So, it wouldn’t be an understatement to say that the litmus test has been successful and we could have more proponents competing for dominance and ETH remains as the leader of the pack.
Yeah, you heard that right. Ethereum ETF will be the next big thing to watch out for, proposed by Black Rock which can supercharge the start of the bull-run. In this piece, we shall see what will be the implications of the Ethereum’s ETF on the overall crypto market.
What’s the Update? How Far to the Ether ETF?
Speculations started dominating the cryptosphere that possibly the next in the line for ETFs would be Ethereum without a doubt; however, everything’s not well in the state of crypto because crypto exchanges which are vouching for an Ethereum ETF have found themselves in hot water ever since the SEC has taken matters into hand reconsidering that, unlike BTC, Ethereum is a PoS blockchain. However, the mixed stance of the SEC, in which they have not included ETH in the lawsuits filed against crypto exchanges somehow positively establishes the narrative that ETH could be inching closer to an ETF approval, nonetheless. However, the chances are just 50% at the time of writing. However, if the ETH ETF comes to fruition, it will have the following impact on the crypto market as a whole.
The Evolution of the Crypto Market Post the Ethereum ETF Approval
Mimicking The BTC Rally
Post the BTC ETF approval speculations, the BTC market has been reverberating to the bullish sentiments. For example, ever since June 2023, BTC has appreciated way over by 45% because at that point of time, BTC was trading at somewhere around $27,763.20 as evident from the chart.
The same performance is expected for Ethereum and lately movements of Ethereum above the $2400 levels have been justifying that stance undoubtedly.
Decoupling of BTC
Right now, the positive narrative for the BTC ETF will be affecting the ETH’s lackadaisical movement in the last couple of months because like BTC has neutralized the volatility post the ETF roll-out, ETH could possibly have the same movements.
When you look at the above chart, ETH and BTC are mimicking the same movements in conjunction with the anticipation for ETFs. In addition to this, the Cancun upgrade would be another major event affecting the stabilization of ETH as a whole in a larger context. Why? Because, so far ETH has been present as not just a store of value due to its naturally turning deflationary laterly but also as a splendid ecosystem to build the next gen of DeFi, and RWAs. Hence, in all likelihood, it is highly expected that the ETF roll-out will positively impact ETH like BTC and we could most likely see major movements ahead.
The Road Ahead…
Ether, is so far the most reliable crypto after Bitcoin and there are numerous crypto exchanges which have adhered to PORs to establish transparency. As a result, in the near future, if the ETH ETF is getting approved, we might see some major movements returning back to Ethereum like BTC. And a major trade-off is that on Grayscale Ethereum Trust, ETH is trading at an 18% discount from the Spot prices which might coerce more investors to look forward to ETH as a splendid asset class to take advantage of the arbitrage opportunity.
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