Ethereum price took a nosedive post-ETF launch, sparking concerns in the crypto community. However, such dips aren’t surprising to seasoned investors. Citing past trends, experts believe pullbacks of this nature, following the introduction of financial products, can be temporary and potentially advantageous.
When the Bitcoin [BTC] spot ETF was first launched in January, it faced a 20% decline over 14 days. Experts pointed out that this setback was temporary as the dominant crypto skyrocketed 91% in the following 51 days. This pattern highlights how initial declines following major financial products’ launches can often precede substantial gains.
Similarly, Ethereum has seen a dip since the recent ETF launch. Despite the current headwinds, the ETF is expected to provide long-term benefits for ETH’s price. Investors should view this pullback as a potential opportunity rather than a cause for concern.
ETH since the ETF launch, and how Bitcoin performed since the ETF launch. Even if it keeps facing headwinds in the first weeks, the ETF should be a long-term benefit to ETH’s price. Be patient.
While the short-term may continue to present challenges, history suggests that patience could be rewarded. The ETF’s long-term impact on Ethereum could mirror the positive trajectory observed with Bitcoin.
Ethereum’s ETF Launch Sparks Debate
Ethereum’s recent market dip has divided the crypto community. Some experts are optimistic, speculating that ETH’s spot ETF launch will pave the way for the next altcoin spot fund. Others are more cautious, citing a lack of maturity and liquidity, as well as regulatory uncertainties. Prominent among them is, BlackRock’s Head of Digital Assets, Robert Mitchnick, who poured cold water over expectations for Solana and XRP ETFs, citing a lack of maturity and liquidity, along with regulatory uncertainties.
Mitchnick’s recent remarks come after ETH’s recent price drop post-ETF launch. The analyst further commended that the SEC was not particularly comfortable with spot Ether ETFs offering staking facilities. He used this reasoning to suggest that an ETF for altcoins such as Solana and XRP might be far off.
However, other well-known ETF analysts like Nate Geraci pointed to VanEck and 21Shares’ SOL ETF filings, highlighting institutional interest despite regulatory uncertainty.