Ethereum ETF Approved but Why Has the Price of Ether Barely Moved?

Crypto Briefing

Hey folks.

Why has the price of Ethereum moved slightly irrespective of the landmark approval of spot Ether Exchange-traded funds (ETF) in the U.S.? There could be two main reasons.

The U.S. Securities and Exchange Commission (SEC) authorized the listing of eight spot Ether ETFs on their respective exchanges on May 23. Ether dropped 3.4% right before the announcement, but it quickly rose by about 5%. As of this writing, ETH is selling for $3,806 per unit.

Zach Rynes, a crypto commentator argues that the absence of a movement reflects the notion that "everyone who wanted to buy the approval already did".

over the past week, Ether already had surged 29% after reports suggested the Securities and Exchange Commission may have pivoted its position towards the approval of ETF.

Although the ETFs have been approved, Rynes and many others point out that they have not yet been cleared to launch. An authorized S-1 filing, which is a thorough document containing information on the firm's financials and risk profile as well as the securities they plan to offer, will be necessary for that.

The amended S-1 filing to the Securities and Exchange Commission has just been sent by VanEck, and according to the analysts, it could take weeks to months for the approval of S-1.

After they start trading, Rynes thinks that ETF inflows will be the next significant factor driving Ether's price.

However, according to some, it may not cause an upward trend immediately.

The price of Bitcoin dropped 15% after the approval of spot Bitcoin ETFs for trading on Jan 10. It took a month for the price of Bitcoin to surge 30%, according to coinmarketcap data.

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