The early summer storm has passed, and sentiment in the crypto market has improved. Next week, the final approval of the Ethereum spot ETFs is expected. Zurich crypto specialist Rino Borini explains why this decision is so important right now.
Interest in Ethereum has increased significantly in recent days, at least according to Google trend data. The search query for the cryptocurrency has seen a notable global surge.
This is no coincidence. Next week, specifically on Tuesday, the final approval of the Ethereum spot ETFs in the US is expected. This has not been officially confirmed. According to insiders, however, the US Securities and Exchange Commission (SEC) has preliminarily approved the applications of at least three of the eight asset managers who want to offer the product. This was reported by the news agency «Reuters».
A Knightly Accolade for Ethereum
According to Zurich crypto specialist Rino Borini, this would be «a knightly accolade for Ethereum,» as he told finews.asia: «Investors will have new opportunities to diversify with the Ethereum ETFs».
And this would give the market new impulses, which it could use well at the moment. Currently, there is anything but euphoria among traders. Bitcoin and other cryptocurrencies have lost up to 20 percent in value in recent weeks. Borini speaks of a market correction. Additionally, Bitcoin halving last spring has affected some miners; they have been earning up to 50 percent less since then. «It was a severe early summer storm,» said Borini.
Hoping for a US Interest Rate Decision
Although this has now passed, it is not yet all sunshine. This could change with the final approval of the Ethereum spot ETFs next week.
The launch of the spot Bitcoin ETFs in the US has already caused a worldwide sensation. The exchange-traded funds broke all records within the first few days and attracted more capital than expected. Similar is now hoped for with the Ethereum ETFs. «However, it will usually take a few more weeks before we see significant net inflows,» explains Borini. This also depends on regulatory requirements.
Additionally, the overall crypto market will be significantly affected by whether the US Federal Reserve can decide on an interest rate cut this year. «The lower the interest rates, the more attractive risk assets become. Therefore, another postponement of an interest rate cut would be a calamity for the crypto industry,» says Borini.
In that case, the stimulus from the final approval of the Ethereum spot ETFs would likely dissipate quickly.
