The post Ethereum Price Crash amid ETF Developments – What’s Happening? appeared on BitcoinEthereumNews.com.
Ethereum (ETH) has experienced significant price fluctuations in recent weeks, with bearish pressure mounting amid macroeconomic factors and investor sentiment shifts. At the same time, the U.S. Securities and Exchange Commission (SEC) has approved the first spot Bitcoin and Ethereum combo ETFs, further impacting the crypto landscape. This article delves into the latest Ethereum price movements, key resistance levels, and the potential impact of these landmark ETFs. By TradingView – ETHUSD_2024-12-20 (1M) 1- SEC Approves Spot Bitcoin and Ethereum ETFs The U.S. SEC has recently approved the first-ever spot Bitcoin and Ethereum combo ETFs from Hashdex and Franklin Templeton. This historic decision is set to further impact the Ethereum market. These ETFs will hold spot Bitcoin and Ethereum based on market capitalization, with an approximate 80/20 split favoring Bitcoin. According to Bloomberg analyst Eric Balchunas, the Hashdex Nasdaq Crypto Index US ETF and Franklin Crypto Index ETF will launch in January. These ETFs are expected to increase market accessibility for retail and institutional investors, possibly leading to greater liquidity and price stability in the Ethereum market. Hashdex’s ETF, trading under the ticker NCIQ, will be managed by custodians such as BitGo, Coinbase, Fidelity, and Gemini. Franklin Templeton’s ETF, trading under the ticker EZPZ, will have similar custodians. The SEC’s approval may signal a shift in regulatory attitudes toward crypto-based financial products, increasing mainstream adoption of cryptocurrencies like Ethereum. 2- Impact of Spot ETFs on Ethereum’s Price Historically, ETF approvals have driven positive sentiment in the crypto market. However, the current macroeconomic environment could limit Ethereum’s price recovery. While Bitcoin ETFs have seen significant success, Ethereum-based ETFs have yet to achieve comparable inflows. U.S. spot Bitcoin ETFs have amassed over $36 billion in net inflows, while Ethereum ETFs have gathered around $2.4 billion since their inception. Hashdex’s decision to avoid launching…