The much-anticipated Ethereum Exchange-Traded Funds (ETF) are finally here, having logged over $100 million in volume in the first 15 minutes. Investors are expecting to see the impact the launch will have on the cryptocurrency market, while some market observers believe the ETH ETF’s results will kick off the altcoin season.
Ethereum Spot ETFs Are Officially Available
On Monday, the U.S. Securities and Exchange Commission (SEC) gave final approval to Ethereum spot ETH, setting a launch date of Tuesday, July 23. Following the approval, investors raised alarm in response to online reports.
According to Whale Alert, Grayscale transferred $1 billion in ETH to Coinbase Institutional. This has left many investors worried that the digital asset manager’s transaction will augment selling pressure on the asset and impact its price performance ahead of the launch.
However, ETF expert Eric Balchunas offered some relief for investors after it was pointed out that Grayscale didn’t move tokens to throw them away. The company moved 292,262 Ethereum “from $ETHE to its mini-me = $ETH.” Balchunas sees this as “a new variable in this race that we didn’t have in the BTC race.”
The first numbers have been released now that the highly anticipated products are live. Balchunas reported on X that Ethereum ETFs reached $112 million in the first 15 minutes of trading. That number grew to $361 million in total after 90 minutes.
The Bloomberg expert praised the volume, calling it a “solid showing,” despite the fact that it represents 20-25% of the Bitcoin (BTC) ETF’s numbers. Despite the good performance, ETH continues to oscillate between the $3,440 and $3,540 price range.
Do ETH and altcoins have a chance to thrive?
Ahead of the launch, some market observers predicted that the ETF results could spark a rise in altcoins. According to several analysts, the altcoin chart shows similarities to the 2016-2017 results, suggesting that Altseason is “gaining momentum.”
According to Crypto Jelle, “Altcoins continue to follow the traditional playbook of preparing for a bull market.” According to the macro chart, altcoins have broken out of the accumulation zone and have been trading around key support levels during previous cycles.
The “consolidation before the bull run” comes after a rally that sent cryptocurrency prices to recent highs. Jelle noted that altcoins are currently in a consolidation zone, similar to previous cycles. He also suggested that a recent rally “shouldn’t take long” after the launch of Ethereum ETFs.
Cryptocurrency trader MikyBull also illuminated similarities between previous cycles that suggest “a big Altseason is coming.” For the trader, the recent “scam” led investors to believe this cycle’s Altseason was “written off,” but he expects altcoins to “rebound in the mold of 2017’s explosive rally,” following the same path of the PA.
The trader believes that Ethereum price may be positively affected by ETH spot ETFs. This performance will be the main driver of the “massive rally in the coming months.” He also set the band price objective $10,000 for ETH.
Other market observers suggested that investors should remain peaceful if prices fall. Analyst and trader pseudonym Moustache called patience, because “it’s just a matter of time.” “The Ethereum chart looks the same as it did in the last cycle, just before the altcoin bull market started,” he added.
At the time of writing, the second-largest cryptocurrency by market capitalization is valued at $3,419, down 1.1% in the past 24 hours.
Featured image from Unsplash.com, chart from TradingView.com
