$70,000 Range Movement... Ethereum ETF 'New Variable' [Bitcoin Now]

US SEC Approves Ethereum Spot ETF Listing
Bitcoin Price Impact... Temporary Widening of Decline
Trading Time Undecided... "Preparation Time Will Be Needed"

[Image source=Yonhap News]

As Bitcoin prices hover around the $70,000 mark in a box range, an Ethereum spot exchange-traded fund (ETF) has received listing approval from the U.S. Securities and Exchange Commission (SEC). Given the temporary significant fluctuations in Bitcoin prices, it is increasingly important to monitor market trends for the time being.

According to the global cryptocurrency market data site CoinMarketCap, as of 8:25 a.m. on the 25th (Korean time), Bitcoin is trading at $68,702.26, up 1.54% from the previous day. Compared to a week ago, it has risen 2.78%, and compared to a month ago, it has increased by 7.29%. Year-over-year, it has recorded a 160.95% increase.

Bitcoin prices started in the high $66,000 range on the 19th, surged on the 21st to break through the $70,000 level, and even reached an intraday high of $71,700. Afterward, it took a gradual downward path, with the decline widening on the 24th to retreat to the low $66,000 range. Since then, buying interest at lower prices has returned, and as of this date, prices have recovered to the high $68,000 range.

The sharp drop in Bitcoin prices the previous day is believed to be due to the approval news of the Ethereum spot ETF, the leading altcoin (cryptocurrencies other than Bitcoin). According to CNBC and others on the 23rd (local time), the U.S. SEC approved the listing application (Form 19B-4) for the Ethereum spot ETF submitted by eight asset management firms, including VanEck. This approval comes about four months after the approval of the Bitcoin spot ETF in January and is significant as it is the first for an altcoin.

The SEC stated on the day, "After careful review, the Commission has determined that this application complies with the Securities Exchange Act and the rules and regulations applicable to U.S. securities exchanges." The decision deadline for VanEck’s Ethereum spot ETF application was that day. Other applicants included BlackRock, Fidelity, Grayscale, Bitwise, Ark & 21Shares, Invesco & Galaxy, and Franklin Templeton.

The market expects that once Ethereum spot ETF trading begins in earnest, billions of dollars in funds will flow in. Jeff Kendrick, Head of Digital Asset Research at Standard Chartered, forecasted, "Between $15 billion and up to $45 billion (approximately 61.5 trillion KRW) could enter the market in the first 12 months." According to market research firm FactSet, net inflows for Bitcoin spot ETFs have surpassed $12 billion (about 16 trillion KRW).

Although listing approval has been granted, the actual trading start date remains undecided. Seongwook Hong, a researcher at NH Investment & Securities, said, "Unlike the Bitcoin spot ETF, some preparation time will be needed before Ethereum spot ETF trading begins. Since SEC’s full feedback is only starting this week, it will take time to finalize the detailed contents of the ETF product."

According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment as of this date, stands at 76 points (extreme greed). Last week, it recorded 73 points (greed). Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.