The long-awaited ethereum exchange-traded funds (ETFs) are finally live and recorded over $100 million in volume in the first 15 minutes. Investors are waiting to see the impact of the launch on the cryptocurrency market, while some market observers believe that the performance of the eth ETF will kick off the altcoin season.
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ethereum Spot ETFs are now officially available
On Monday, the U.S. Securities and Exchange Commission (SEC) gave the final go-ahead for ethereum spot ETFs, setting the launch date for Tuesday, July 23. Following the approval, investors raised alarm following some online reports.
According to Whale Alert, Grayscale has transferred $1 billion worth of eth to Coinbase Institutional. This led many investors to fear that the digital asset manager’s transaction would add selling pressure to the asset and affect its price performance ahead of launch.
However, ETF expert Eric Balchunas x.com/EricBalchunas/status/1815508094564049162″ target=”_blank” rel=”nofollow”>Offered A relief for investors after pointing out that Grayscale did not move the tokens to get rid of them. The firm transferred the 292,262 ethereum “from $ETHE to its mini-me = $eth.” Balchunas considers it “a new variable in this race that we did not have in the btc race.”
Initial figures have been released now that the long-awaited products are available. Balchunas shared on x that ethereum ETFs recorded $112 million in the first 15 minutes of trading. This figure increased to a total of $361 million after 90 minutes.
Bloomberg's expert praised the volume, calling it a “solid performance” despite accounting for 20-25% of bitcoin (btc) ETF figures. Despite the strong performance, eth is still hovering between the $3,440 and $3,540 price range.
Are eth and altcoins about to take off?
Prior to the launch, some market observers anticipated that the ETF's performance could fuel an altcoin rally. According to several analysts, the altcoin chart shows similarities to the performance of 2016-2017, suggesting that altcoin season is “brewing.”
For crypto Jelle, “altcoins are still following the traditional playbook of bull market preparation.” According to the macro chart, altcoins broke out of the accumulation zone and moved around key support levels during previous cycles.
The “pre-bull market consolidation” was followed by a takeoff that pushed cryptocurrency prices to new highs. Jelle noted that altcoins are currently in the consolidation zone, similar to previous cycles. He also suggested that a new takeoff “shouldn’t take long” after the launch of ethereum ETFs.
Cryptocurrency trader MikyBull also x.com/MikybullCrypto/status/1814688097839304981″ target=”_blank” rel=”nofollow”>Outstanding The similarities between previous cycles, suggesting that a “huge Altseason” is brewing. For the trader, the recent “fakeout” made investors believe that this cycle’s Altseason “has been written off,” but he expects altcoins to “be like 2017” and follow the same PA path.
The trader believes that the ethereum price could be positively affected by eth spot ETFs. This performance will be the main driver of the “huge rally in the coming months.” He further set a price band x.com/MikybullCrypto/status/1815728317989093690″ target=”_blank” rel=”nofollow”>aim of $10,000 per eth.
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Other market observers suggested that investors should remain calm if a price drop occurs. Analyst and pseudonymous trader Moustache x.com/el_crypto_prof/status/1815747979141169223″ target=”_blank” rel=”nofollow”>called “It's just a matter of time,” he added. “ethereum's chart looks like it did in the last cycle, just before the altcoin bull market started.”
At the time of writing, the second-largest cryptocurrency by market cap is trading at $3,419, down 1.1% over the past 24 hours.
Featured image from Unsplash.com, chart from TradingView.com