Spot Ethereum ETF Trading Needs Short-Term Adjustment?

Bittime - Today is July 23 2024, Ethereum Spot ETF trading has been approved by the US SEC. The ETF was met with great enthusiasm, but 10x Research warned of possible short-term market adjustments following this launch.

Ethereum Spot ETF Approval Process

Approval of the Ethereum Spot ETF by the SEC is not an instant process. This approval process involves several important stages. On May 20, the SEC asked exchanges to update their 19b-4 application documents. This request increases the probability of Ethereum ETF approval from 25% to 75%.

A week Next, the number of open contracts (open interest) for ETH futures increased by 500,000, with the total value rising from $8.8 billion to $13 billion. ETH price also jumped from $3,065 to a peak of $3,959. This shows the magnitude of the impact that the regulator's measures have had on Ethereum's price and trading volume.

Market Adjustments After Ethereum Spot ETF Listing

Usually, the launch of a new financial product is often followed by market adjustments. From the launch of Bitcoin futures in December 2017 to the listing of the Bitcoin Spot ETF in January 2024, any major event can cause a short-term market correction.

Because of that, 10x Research reminds investors to pay attention to price fluctuations that may occur following the listing of the Ethereum Spot ETF. While the approval of this ETF is a significant step forward for the crypto industry, market volatility in the short term is something to be wary of.

Impact on Price and Trading Volume

As has been seen from previous data, the announcement and approval of the Ethereum Spot ETF caused a surge in prices and trading volumes. For example, in the period from May 20 to May 23, after the SEC announced an increase in the probability of Ethereum ETF approval, the price of Ethereum rose sharply. 

However, market adjustments usually occur when high expectations are met and the market begins to adjust to the new reality. So, you must remain alert to the potential for price declines after the initial euphoria subsides.  

How to Buy Crypto with Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. over is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor graphic movement price Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.