Buy or Sell ETH? Ethereum ETFs are here...

Traders are now asking if we get the typical post-launch sell-off….

Author

Markus Thielen
July 22, 2024

👇1-14) Surprisingly, on May 20, the Ethereum ETF filings process progressed when the SEC asked exchanges to update their 19b-4 filings. This dynamic changed the approval probability from 25% to 75%. By May 23, the SEC approved exchange applications to list spot Ether ETFs, clearing the main hurdle for approval.

👇2-14) Driven by an immediate increase of 500,000 ETH in open interest over the next seven days, ETH futures open interest increased from $8.8bn to $13.0bn as Ether prices jumped from 3,065 to 3,959 when the high was reached.

 Ethereum vs. Stochastics indicator (>90% signals overbought)

👇3-14) Since then, we have received more clarity from the SEC, and the agency has approved ETH ETFs, which will start trading today. As in all previous cases, from the December 2017 Bitcoin futures launch to the Coinbase listing in April 2021, the October 2021 Bitcoin ETF based on futures listing, and the launch of the Bitcoin ETFs based on spot in January 2024, all listings have caused a correction shortly after.

 Traders are now asking if we get the typical post-launch sell-off….

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