Experts Don’t Have Confidence in Ethereum Like They Do Bitcoin
The market is buzzing, but not with excitement for Ethereum. Unlike Bitcoin, Ethereum’s upcoming spot exchange-traded funds (ETFs) are being met with skepticism and doubt. Traders are cautious, not sure if Ethereum will follow Bitcoin’s path or stumble under its own weight.
Also read: How Many Ethereum Are There?
By May 20, Ether had already declined by 15% in over two months. This was before the rumors began that the SEC might approve Ethereum ETFs. Following this news, Ether surged 29% in just three days. At press time, per data from TradingView, it trades at $3,755.
Experts Don’t Have Confidence in Ethereum
Matthew Hyland, a well-known crypto trader, shared his thoughts on X, saying there is less likelihood of a selloff here after the Ethereum ETF than the Bitcoin ETF. Unlike Ether, Bitcoin didn’t experience a price decline leading up to the approval of its spot ETFs on January 10.
The BTC ETF had no pullbacks in the months leading into it. The selling pressure began when the Grayscale ETF was listed the following day.
Hyland
According to Farside, since the spot Bitcoin ETFs launched, Grayscale Bitcoin Trust (GBTC) has lost $17.6 billion in assets. Michaël van de Poppe, a well-known analyst, shared a similar view. He stated, “It’s a waiting time until the listing takes place, and then the inflow will provide whether there’s a strong continuation upwards.”
There Are Concerns Over Grayscale’s Plans
There are also worries about Grayscale’s intentions to convert its Ethereum Trust (ETHE) into an ETF. This move could lead to selling pressure and impact Ether’s price. “One key similarity is both have a Grayscale product. The Grayscale ETF lead to selling pressure for BTC, likely will see the same for the ETH ETF once the product is listed,” Hyland stated.
Also read: BlackRock’s Spot Ethereum ETF Has Been Listed On The DTCC
Despite the concerns, Hyland predicted a bullish outlook for Ether’s price. He noted that Ether reached local highs of $4,092 in March without any news of spot Ether ETF approval. The year’s highest price came just before ETF analyst Eric Balchunas reduced his approval hopes for spot Ether ETFs to 25%.
Ethereum Lacks a Simple Pitch
One significant issue for Ethereum is its messaging. Unlike Bitcoin, often called “digital gold,” Ethereum lacks a simple and catchy phrase to attract investors, especially those from the baby boomer generation. James Check, a lead analyst at Glassnode, mentioned this in a post. “Ethereum still has no elevator pitch, despite years of attempts,” he wrote.
I scrolled far enough through the comments to be adequately reminded that Ethereum still has no elevator pitch, despite years of attempts.
— _Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) May 24, 2024
A few folks are still hanging desperately to the ultra silly money meme, but no cohesive narrative.
Identity no mans land. This isn’t… https://t.co/T50J6j0KLc
Bloomberg ETF analyst Eric Balchunas added to this point. He noted that Ethereum does not have a simple selling point that investment managers can easily present to older investors. “Bitcoin is digital gold,” he said. The message isn’t as clear for Ethereum.
Different people in the crypto industry have proposed their own pitches for Ethereum. Adam Cochran, a partner at Cinneamhain Ventures, described Ethereum as “digital oil.” He said, “It’s the gas that makes decentralized protocols run. It’s productive, and yield bearing.”
Cryptopolitan reporting by Jai Hamid
Read More
Experts Don’t Have Confidence in Ethereum Like They Do Bitcoin
The market is buzzing, but not with excitement for Ethereum. Unlike Bitcoin, Ethereum’s upcoming spot exchange-traded funds (ETFs) are being met with skepticism and doubt. Traders are cautious, not sure if Ethereum will follow Bitcoin’s path or stumble under its own weight.
Also read: How Many Ethereum Are There?
By May 20, Ether had already declined by 15% in over two months. This was before the rumors began that the SEC might approve Ethereum ETFs. Following this news, Ether surged 29% in just three days. At press time, per data from TradingView, it trades at $3,755.
Experts Don’t Have Confidence in Ethereum
Matthew Hyland, a well-known crypto trader, shared his thoughts on X, saying there is less likelihood of a selloff here after the Ethereum ETF than the Bitcoin ETF. Unlike Ether, Bitcoin didn’t experience a price decline leading up to the approval of its spot ETFs on January 10.
The BTC ETF had no pullbacks in the months leading into it. The selling pressure began when the Grayscale ETF was listed the following day.
Hyland
According to Farside, since the spot Bitcoin ETFs launched, Grayscale Bitcoin Trust (GBTC) has lost $17.6 billion in assets. Michaël van de Poppe, a well-known analyst, shared a similar view. He stated, “It’s a waiting time until the listing takes place, and then the inflow will provide whether there’s a strong continuation upwards.”
There Are Concerns Over Grayscale’s Plans
There are also worries about Grayscale’s intentions to convert its Ethereum Trust (ETHE) into an ETF. This move could lead to selling pressure and impact Ether’s price. “One key similarity is both have a Grayscale product. The Grayscale ETF lead to selling pressure for BTC, likely will see the same for the ETH ETF once the product is listed,” Hyland stated.
Also read: BlackRock’s Spot Ethereum ETF Has Been Listed On The DTCC
Despite the concerns, Hyland predicted a bullish outlook for Ether’s price. He noted that Ether reached local highs of $4,092 in March without any news of spot Ether ETF approval. The year’s highest price came just before ETF analyst Eric Balchunas reduced his approval hopes for spot Ether ETFs to 25%.
Ethereum Lacks a Simple Pitch
One significant issue for Ethereum is its messaging. Unlike Bitcoin, often called “digital gold,” Ethereum lacks a simple and catchy phrase to attract investors, especially those from the baby boomer generation. James Check, a lead analyst at Glassnode, mentioned this in a post. “Ethereum still has no elevator pitch, despite years of attempts,” he wrote.
I scrolled far enough through the comments to be adequately reminded that Ethereum still has no elevator pitch, despite years of attempts.
— _Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) May 24, 2024
A few folks are still hanging desperately to the ultra silly money meme, but no cohesive narrative.
Identity no mans land. This isn’t… https://t.co/T50J6j0KLc
Bloomberg ETF analyst Eric Balchunas added to this point. He noted that Ethereum does not have a simple selling point that investment managers can easily present to older investors. “Bitcoin is digital gold,” he said. The message isn’t as clear for Ethereum.
Different people in the crypto industry have proposed their own pitches for Ethereum. Adam Cochran, a partner at Cinneamhain Ventures, described Ethereum as “digital oil.” He said, “It’s the gas that makes decentralized protocols run. It’s productive, and yield bearing.”
Cryptopolitan reporting by Jai Hamid
Read More