Last Monday, all eyes were on the world of cryptocurrencies as news broke about the approval of spot Ethereum ETFs. The announcement caused a surge in prices for both Ethereum and Bitcoin, with ETH reaching nearly $4,000. The approval of all eight applications on May 23 also caused market fluctuations, although it is still uncertain when trading will begin in the US. Nevertheless, this recent development is a significant milestone.
One notable move in the ETF space came from BlackRock, the world’s largest asset management company. They announced the submission of an updated S-1 document for spot Ethereum ETFs. While the SEC had initially given their approval, the updated document garnered significant attention as it marked the next step in the process. BlackRock’s previous success with spot Bitcoin ETFs has led many to believe that they could have a significant role to play in the spot Ethereum ETF market as well.
Alongside BlackRock’s move, the focus shifted to the price of Ethereum. Last week, Ethereum experienced a rise from $3,000 to nearly $4,000 before dropping to $3,300 prior to the approval.
At the time of writing, Ethereum is currently trading at $3,770, reflecting a 2% drop in the past 24 hours. Additionally, most of ETH’s gains over the past 7 days have been wiped out. The market cap of Ethereum has also declined to $452 billion, and the 24-hour trading volume has decreased by 10% to $17 billion, indicating a significant loss of investor interest.
This situation is believed to have been influenced by recent statements from US officials. In particular, comments made by a Fed official about potential interest rate hikes caused panic in the market.
It is important to note that the information provided in this article should not be taken as investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct their own research before making any investment decisions.
