Yesterday, previously approved Ethereum ETFs got cleared for trading by the SEC.
The Ethereum ETFs started trading on the second day of the second decade of Ethereum's history, since Ethereum was launched on July 22, 2014... Quite a symbolic date was chosen to start trading of these ETFs, wouldn't you say?
During this first day, over 1bn dollars were traded in and out of the ETFs, but with only a little above 100m net flow positive. As in the case of Bitcoin ETFs, Grayscale ETF (the big one of the two) is bleeding out and the other ETFs are absorbing their holdings.
Compared to Bitcoin spot ETFs in their first day, Ethereum spot ETFs had a 4.6x lower trading volume. It pays off to be first in the market and to launch in January instead of July, huh?
Compared to any other non-crypto ETFs, both Bitcoin and Ethereum based spot ETFs started really strong.
One of my first images generated with Venice AI... Preparing for the future... By the way, does Venice AI understand how to modify a previously generated image instead of generating a new one for each prompt?
The market received the event with a slight "sell the news" attitude, similar to what happened when the Bitcoin ETFs started trading. In bitcoin's case, 2 weeks of selloff period followed, then 2 months of strong bull action.
I don't see the pattern repeating, since September is generally a bad month for crypto, so I am curious how the market plays this event. Maybe it'll be a similar pattern, but compressed in time, until the end of August, beginning of September? I don't see the market going flat until October. So, maybe we will have a strong but short term uptrend led by Ethereum, and then a correction in September.
I continue to see these spot ETFs and other products created by traditional financial businesses and digital businesses which operate in the Web 2 world as a gateway to main adoption but also a serious detour from the original ideals in crypto and likely a potential threat to the space and some of the elements that define parts of it: decentralization, censorship resistance, DAOs, etc.
But I see many embrace this, so we will see what the future holds for us...