Analysis: Compared with Bitcoin, Ethereum spot ETF is less likely to experience a pullback after approval

“I think there is less chance of a sell-off with an Ethereum spot ETF (approved) than with a Bitcoin spot ETF,” cryptocurrency trader Matthew Hyland said in a May 24 post. He noted that unlike Ethereum, Bitcoin did not experience a price drop in the period leading up to the SEC’s approval of a spot Bitcoin ETF on January 10. “There was no pullback in the months leading up to the Bitcoin ETF approval. When the Grayscale Bitcoin spot ETF was listed the next day, selling pressure began. According to Farside data, GBTC has seen a net outflow of $17.6 billion since the launch of the spot Bitcoin ETF. As of May 20, Ethereum fell 15% in two months until reports that the U.S. SEC may have shifted its stance to approve an ETF, and soon after the news broke, Ethereum surged 29% in three days. Although there are concerns that Grayscale plans to convert its Ethereum Trust (ETHE) into an ETF, which could lead to selling pressure and price impact. “A key similarity is that both have Grayscale products. Grayscale ETF caused selling pressure on Bitcoin, and the same may happen to Ethereum ETF once the product is launched," Hyland said. (Cointelegraph)