Nikos Pekiaridis | Nurfoto | fake images
Ether fell on Friday even after the Securities and Exchange Commission approved a rule change That will pave the way for exchange-traded funds that buy and hold the cryptocurrency.
The price of ether fell 2% to around $3,700.00, according to Coin Metrics. It is holding on to its 20% weekly gain and is on track for its best week in over a year.
"Current market behavior appears more like a pause as investors digest recent gains and assess the impact of external economic factors, including the recent rate sell-off," said Rachel Lin, CEO and co-founder of the decentralized trading platform of SynFutures derivatives. "This pause likely also reflects a cautious approach given the current uncertainty over the timeline for regulatory approvals such as S-1 filings."
ETH ETF approvals discounted earlier in the week
Earlier this week increased more than 20% in two days, as expectations for an SEC approval of ether ETF applications changed abruptly. The previous consensus was that the agency was unlikely to greenlight the new funds, due to the agency's lack of involvement in the submissions. By contrast, in the weeks leading up to the approval of bitcoin ETFs, the SEC was reported to be actively engaging with fund issuers.
Alex Saleh, head of partnerships at blockchain protection firm Coincover, said that although Thursday night's approval was quickly assessed, uncertainty remains over when the new products will hit the market and which players will be involved.
"This uncertainty makes it difficult to predict any changes in demand that lead to further price discovery," he said. "Calls from major industry players that this confirms ether's status as a commodity are also introducing further uncertainty into the market, with many investors waiting to see the regulatory outcome of the commodities versus securities debate."
Coinbasewhich You can be a beneficiary of Ether ETFwas more than 1% in pre-market operations, while Robin Hood almost 1%. While both companies offer cryptocurrency trading, Coinbase could benefit more from the introduction of ether ETFs as it offers a host of other cryptocurrency services, including custody and staking, as well as a larger selection of tradable assets. Coinbase also operates a blockchain, called Base, which is based on the Ethereum network.
Cryptocurrency prices, including ether, may also see moderation on Thursday afternoon. stock market liquidation. Better-than-expected services and manufacturing data for May and initial jobless claims for the week ending May 18 dimmed investors' hopes for a rate cut in September. ETF optimism kept ether afloat, but bitcoin fell approximately 4%. On Friday, the flagship cryptocurrency remained above the flat line for the day and the week.
