Markets
Ether Slides After SEC Opens Door to Ether ETFs, But Still Posts Best Week in More than a Year 107419501
Ether It also slipped after the Securities and Exchange Commission on Friday approved a rule change this will pave the way for exchange-traded funds to buy and hold the cryptocurrency.
According to Coin Metrics, the price of ether fell about 1% to around $3,745. During the week, it rose more than 20% to record its best week since March 2023.
“Today’s market behavior looks more like a pause as investors digest recent gains and evaluate the impact of external economic factors, including the recent rate sell-off,” said Rachel Lin, CEO and co-founder of the trading platform SynFutures decentralized derivatives trading. “This pause also likely reflects a cautious approach given continued uncertainty around the timeline for regulatory approvals, such as S-1 filings.”
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ETH ETF approvals were discounted earlier in the week
In the meantime, CoinBasea potential beneficiary of ether ETFsturned higher by more than 8%, while Robin Hood added 6%.
While both companies offer cryptocurrency trading, Coinbase could benefit from it more since the introduction of ether ETFs as they offer a range of other crypto services, including custody and staking, as well as a broader selection of tradable assets. Coinbase also operates a blockchain called Base built on the Ethereum network.
Ether’s tepid price action may be due to investors quickly pricing in SEC approval earlier this week. The coin it increased by more than 20% in two days, following a turnaround in expectations. The previous consensus was that the agency was unlikely to greenlight the new funds, due to the agency’s lack of commitment to the filings. In contrast, in the weeks leading up to the approval of bitcoin ETFs, the SEC was reported to be actively engaging with fund issuers.
Alex Saleh, head of partnerships at blockchain security firm Coincover, also noted that it is not yet clear when the new products will hit the market and which players will participate.
“This uncertainty makes it difficult to predict any changes in demand that will lead to further price discovery,” he said. “Demands from major industry players that this confirm ether’s status as a commodity are also introducing further uncertainty into the market, with many investors waiting to see the regulatory outcome of the commodity versus securities debate.”