Altcoins
A temporary setback or a hidden opportunity?
Ethereum price plummeted after the ETF launch, sparking concerns in the crypto community. However, such drops are not surprising to seasoned investors. Citing past trends, experts believe Drawdowns of this nature, following the introduction of financial products, may be temporary and potentially beneficial.
When Bitcoin [BTC] First launched in January, the spot ETF suffered a 20% decline over 14 days. Experts noted that this setback was temporary, as the dominant crypto surged 91% over the next 51 days. This pattern illustrates how initial declines following the launch of major financial products can often precede substantial gains.
Source: Jelle
Similarly, Ethereum has seen a decline since the recent ETF launch. Despite the current headwinds, the ETF should provide long-term upside for ETH price. Investors should view this pullback as a potential opportunity rather than a cause for concern.
ETH since ETF launch and Bitcoin performance since ETF launch. While it continues to face headwinds in the first few weeks, the ETF should be a long-term positive for ETH price. Be patient.
While the short term may continue to present challenges, history shows that patience may be rewarded. The long-term impact of ETFs on Ethereum could mirror the positive trajectory seen with Bitcoin.
Ethereum ETF Launch Sparks Debate
The recent Ethereum market crash has divided the crypto community. Some experts are optimistic, speculating that the launch of the ETH spot ETF will pave the way for the next altcoin spot fund. Others are more cautious, citing a lack of maturity and liquidity, as well as regulatory uncertainties. Among them, BlackRock’s head of digital assets, Robert Mitchnick, poured cold water on expectations for the Solana and XRP ETFs, citing a lack of maturity and liquidity, as well as regulatory uncertainties.
Mitchnick’s recent remarks come after the recent drop in ETH’s price following the ETF launch. The analyst also praised the fact that the SEC isn’t particularly comfortable with spot Ether ETFs offering staking opportunities. He used this reasoning to suggest that an ETF for altcoins such as Solana and XRP could be a long way off.
However, other well-known ETF analysts like Nate Geraci have pointed to SOL ETF filings from VanEck and 21Shares, highlighting institutional interest despite regulatory uncertainty.