Ethereum slightly tilts toward bears, may only see 20% of Bitcoin ETF flows following silver comparison


  • Ethereum ETFs will see only 20% of Bitcoin ETFs flows as it may be viewed like Silver.
  • Hashdex withdrew its spot ETH ETF application after failing to submit updated 19b-4 with SEC.
  • Ethereum may begin trading within key range until ETF S-1 approval.

Ethereum (ETH) sustained its sideways movement on Wednesday as Bloomberg analyst Eric Balchunas compared spot ETH ETFs to Silver ETFs, predicting that they will only see 20% of the flows recorded across Bitcoin ETFs.

Daily digest market movers: 20% of Bitcoin flows, Hashdex, L2 subcultures

Ethereum is slightly trending downward on Wednesday following fading ETF euphoria. Here are the latest news surrounding the number one altcoin:

In a recent X update, Bloomberg analyst Eric Balchunas used Silver ETFs vs. Gold ETFs to compare the potential performance of spot ETH ETFs vs. Bitcoin ETFs. According to Balchunas, Ethereum will be seen as similar to Silver, which has only a 15% share compared to Gold ETFs. "Many won't feel the need to go beyond Bitcoin/Gold for their crypto/precious metals allocation," said Balchunas.

Also read: Ethereum may continue outperforming Bitcoin as 'programmable money' may be ETH's new slogan

He also highlighted how the low share of ETH ETFs vs. Bitcoin ETFs in other regions forms the basis for a final prediction that spot ETH ETFs would only capture 20% of Bitcoin ETF flows.

The Securities & Exchange Commission's (SEC) latest filings revealed that Hashdex withdrew its spot ETH ETF proposal after failing to update 19b-4 forms like other issuers. The issuers that received 19b-4 approval on May 23 were VanEck, BlackRock, Franklin Templeton, Invesco & Galaxy, Fidelity, Grayscale, Bitwise and ARK 21Shares.

Volatility Shares 2x Ether Strategy ETF (ETHU) will launch on June 4 after approval from the SEC, according to a post on the company's website. The ETF aims to track twice the price performance of ETH and will become the first leveraged Ethereum ETF in the US.

Volatility Shares is one of the largest holders of Bitcoin futures contracts at the Chicago Mercantile Exchange (CME) after launching a Bitcoin 2x fund in June 2023. Many members of the crypto community see their ETH leveraged futures ETF approval as further confirmation that the SEC may have abandoned its investigations into Ethereum’s potential security status.

Read more: Ethereum may shoot past $4,000 as Michael Saylor believes spot ETH ETF will help Bitcoin

In a recent article, Ethereum co-founder Vitalik Buterin discussed how Layer 2s allow cultural extensions of the Ethereum ecosystem. "Layer 2s allow subcultures to emerge that are armed with substantial resources, and a feedback loop that forces them to learn and adapt in order to be effective in the real world," said Buterin.

He also stated how every Ethereum Layer 2 — including Polygon, Metis, Arbitrum, Optimism, etc. — has a unique soul: "some combination of Ethereum's culture, together with its own particular twist."

ETH technical analysis: Ethereum could sustain sideways move within key range

Ethereum is trading below $3,800 on Wednesday as it tilts further toward downside pressure in its sideways movement.

ETH/USDT 4-hour chart

ETH/USDT 4-hour chart

The $4,000 and $3,605 range may prove crucial in the coming weeks until the spot ETH ETF S-1 registration approval. ETH will likely trade inside the range as it has failed to sustain any move outside since the spike of May 20. The only exception will be if a major bullish or bearish news hits the market. This sentiment is hinged on the general crypto market movement, which shows both bulls and bears have slowed down activity.

Also read: Week Ahead: Checking the health of Bitcoin’s bull run

ETH may resume its rally and break past the March high of $4,093 if positive information surrounding spot ETH ETFs enters the market.

ETH liquidation data reveals long liquidations are at $17.37 million, while shorts sit at $5.93 million.

Ethereum FAQs

Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.

Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.

Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.

Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

XRP struggles below $0.50 as Ripple proponent attorneys slam SEC for Ethereum “free pass”

XRP struggles below $0.50 as Ripple proponent attorneys slam SEC for Ethereum “free pass”

XRP trades back below $0.50 on Wednesday as Ripple (XRP) proponents like attorney Bill Morgan have lashed out at the Securities and Exchange Commission (SEC) for what is being considered a “second free pass” for Ethereum. 

More Ripple News

Ethereum survives SEC scrutiny: Enforcement division closes investigation into Ether, Consensys says

Ethereum survives SEC scrutiny: Enforcement division closes investigation into Ether, Consensys says

Ethereum (ETH) received a free pass from the US Securities and Exchange Commission (SEC) as the regulator decided to drop its investigation into ETH for allegedly selling the token as a security. 

More Ethereum News

Polygon MATIC poised for 10% rally as momentum indicators signal strength

Polygon MATIC poised for 10% rally as momentum indicators signal strength

Polygon price formed a bullish divergence on a momentum indicator, signaling a reversal. On-chain data shows MATIC’s capitulation event occurred between June 12 and 18.

More Polygon News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin technical indicators signal bullish momentum

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin technical indicators signal bullish momentum

Bitcoin price action shows a bullish divergence on a momentum indicator, signaling a forthcoming bullish trend. Ethereum and Ripple are poised to mirror Bitcoin's trajectory, preparing to breach resistance levels and rally upwards in tandem.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Fed keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP