The spot Ethereum ETFs were one of the narratives that crypto investors had huge expectations for green market. Yet, over the last three days, there has not been any record of groundbreaking Ethereum uptrend in the ecosystem.
The reason why the spot Ethereum ETFs did not perform as well as spot Bitcoin ETFs might be related to the timing of the exchange - traded funds. When Bitcoin ETFs were expected, the global fund managers were supporting the idea that there might be up to 4 - 6 interest rate cuts this year.
However, when we look at the sentiment or the risk appetite in the global economy, we see that there is an expectation of recession, more conflicts in the world and a stressful election upcoming in the U.S. For these reasons, Ethereum spot ETFs cannot be blamed for poor performance in the short - term.
Ethereum Foundation Dumps
Unfortunately, when Ethereum foundation decides to dump some ETH, their impact is sensible.
After almost 7 years, a wallet related to the Ethereum Foundation has moved its funds for a reason.
Even though there is an appetite for the newly - launched spot Ethereum ETFs, the narrative and the amount of Ethereum dump can easily surpass the buyers in a red and low liquidity market.
What's the case of Volume on ETFs so far?
The volume has been slightly going down as a sign of decrease in the motivation to put the money in risky assets or markets.
Whilee the bonds are giving more than 5% yearly interest and their market prices may go up with the interest rate cuts, the investors show little attention on the altcoins or crypto in general.
The event of spot crypto ETFs cannot be disregarded, it might be one of the best (or the worst) thing that have happened in the market. Since it is something massive, the outcomes are hard to foresee in our current position.
So long as the global risk appetite starts to shift to risky markets, the altcoins will see a sharp V correction together. However, until the ideal conditions come true, the crab walks in altcoins may continue.
What do you think about Ethereum's Performance after spot ETFs?
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Posted Using InLeo Alpha
