• Bitcoin (BTC) and ether (ETH) prices declined in the past 24 hours, despite several ether exchange-traded funds being granted approval to list in the U.S.

  • The ether price, which was up more than 20% in the past week, fell 4% after the approval, which became a "sell the news" event.

  • Traders say they expect a significant influx of institutional capital into the ether market in the long term.

Bitcoin (BTC) and ether (ETH) prices fell in the past 24 hours even as several ether exchange-traded funds (ETFs) were approved for listing on U.S. exchanges.

Ether has dropped 4% since the approval, CoinGecko data shows. It had risen 20% over the course of a week amid indications of pending approval and updated odds of the ETFs getting approved. The broad-based CoinDesk 20, a liquid index that tracks the biggest tokens, fell 4.5% over 24 hours and the crypto market cap lost 2.9% to $2.5 trillion.

“Ethereum's sell-off on positive news is a typical "buy the rumors, sell the facts" reaction of speculators,” Alex Kuptsikevich, a senior market analyst at FxPro, said in an email to CoinDesk. “We shouldn't be surprised if the price pulls back to the $3000 area again, returning to an important consolidation area. From these levels, large institutional investors can start building a position in ETFs.

“We saw the same in January after the approval of the Bitcoin ETF, which took 19% off its price in the following two weeks before there was a spectacular reversal,” he said.

The U.S. Securities and Exchange Commission (SEC) on Thursday approved key regulatory filings tied to ether ETFs, a historic milestone for the second-largest cryptocurrency. They are not, however, cleared to trade. Although the SEC approved the 19B-4 form that allows for the offering and listing of ETFs, it must still green light the funds' S-1 filings before investors can buy them.

The regulator 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 the ETFs are approved for trading, a significant influx of institutional capital is likely. Standard Chartered predicted inflows of as much as $45 billion in the first 12 months.

Some traders say they expect ether to rally over 60% in the coming months, with a marked increase in futures and spot buying demand for the token in the past week.


All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

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