Bitcoin (BTC) and Ethereum (ETH) have experienced a price decline in the last 24 hours. This came as a surprise to many, as a large number of Ethereum ETFs were recently approved to list on US exchanges.
Alex Kuptsikevich, a senior market analyst at FxPro, explained this unexpected market reaction. “Ethereum selling on positive news is a typical 'buy the rumors, sell the facts' reaction of speculators,” Kuptsikevich said.
Kuptsikevich suggests that we shouldn't be surprised if the price retreats back to the $3000 region, returning to a significant consolidation area. “From these levels, large institutional investors can start building positions in ETFs,” Kuptsikevich added.
This is not the first time the crypto market has reacted this way. Kuptsikevich noted a similar trend following the approval of the Bitcoin ETF in January. “The price fell 19% in the following two weeks before a spectacular comeback,” he said.
The U.S. Securities and Exchange Commission (SEC) made a historic decision Thursday, approving key regulatory filings tied to Ethereum ETFs. This is a major milestone for the second largest cryptocurrency. However, these ETFs are not yet available for trading. The SEC has approved form 19B-4, which allows ETFs to be offered and listed, but funds still need to greenlight S-1 filings before investors can purchase them. This means that although ETFs have been approved, they cannot yet be purchased by investors.
*This is not investment advice.