Skip to content
Crypto News Focus logo CNF_CRYPTO_NEWS_FOCUS_LOGO 8

Crypto News Focus

your day to day crypto news site

Primary Menu
  • Home
  • News
    • Bitcoin News
    • Ripple XRP news
    • Ethereum News
    • Cardano News
    • Shiba Inu News
    • Pi Network News
    • More
  • Analysis
  • PR Desk
  • About Us
  • General Policy & Privacy
  • Guides
    • Bitcoin Guides
    • Pi Network Guide
    • Cardano Guide
  • Politics
  • Tech
  • Home
  • News
  • Bitcoin (BTC) and Ether Prices Drop Amid U.S. Ether ETF Approval
  • News

Bitcoin (BTC) and Ether Prices Drop Amid U.S. Ether ETF Approval

Dennis Gatheca 24 May 2024
Bitcoin ETFs image
  • Bitcoin and Ether prices declined despite the approval of several Ether ETFs for listing in the U.S., illustrating a classic “buy the rumor, sell the news” reaction among speculators.
  • Long-term prospects remain optimistic, with significant institutional inflows expected once the ETFs are cleared for trading.

The cryptocurrency market faced a notable pullback as Bitcoin (BTC) and Ether (ETH) prices declined over the past 24 hours. This drop occurred even after the approval of several Ether exchange-traded funds (ETFs) for listing in the U.S., a significant regulatory milestone for the cryptocurrency industry.

“Buy the Rumor, Sell the News” Effect

Ether’s price, which had surged more than 20% in the week leading up to the approval, fell by 4% following the announcement. This decline illustrates the classic “buy the rumor, sell the news” phenomenon, where speculators drive prices up in anticipation of positive news, only to sell off once the news is confirmed.

Alex Kuptsikevich, a senior market analyst at FxPro, noted this pattern, stating, “Ethereum’s sell-off on positive news is a typical ‘buy the rumors, sell the facts’ reaction of speculators.” Kuptsikevich predicts that Ether might pull back to the $3,000 level, a crucial consolidation area where institutional investors could start accumulating positions in ETFs.

The broader cryptocurrency market also experienced a downturn, with the CoinDesk 20, a liquid index tracking the largest tokens, falling by 4.5% over the same period. The total crypto market cap decreased by 2.9%, settling at $2.5 trillion.

Anticipated Institutional Inflows

Despite the short-term decline, the long-term outlook remains optimistic. Traders expect a substantial influx of institutional capital into the Ether market once the ETFs are approved for trading. The U.S. Securities and Exchange Commission (SEC) has approved the regulatory filings for eight ETFs from major financial institutions such as VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy, and BlackRock. These ETFs are set to list on prominent exchanges like Nasdaq, NYSE Arca, and Cboe BZX.

However, the ETFs are not yet cleared for trading, as the SEC must still approve their S-1 filings. Once this final approval is granted, significant institutional investments are expected. Standard Chartered has projected inflows of up to $45 billion within the first 12 months of trading.

Some traders remain bullish on Ether’s future, forecasting a potential rally of over 60% in the coming months. This optimism is fueled by an increase in futures and spot buying demand for the token observed in the past week.

The recent decline in Bitcoin and Ether prices, despite the approval of Ether ETFs, underscores the volatile nature of the cryptocurrency market. While the initial reaction to the news has been negative, the long-term prospects for institutional investment remain strong. As the market adjusts to these developments, investors and traders alike will be closely watching the SEC’s next moves and the subsequent market reactions.

Continue Reading

Previous: Analyzing Bitcoin’s (BTC) Potential Surge to $140K Based on Historical Trends
Next: Ethereum (ETH) ETFs Approved by SEC: BlackRock, Fidelity Among the Big Winners

Related Stories

Cardano ADA under the sand
  • Analysis

Cardano Hits 110 Million Transactions as DeFi and NFT Adoption Grow

Sean Williams 2 June 2025
Ripple Logo on a black background
  • News

Ripple Challenges SWIFT with XRP and RLUSD Stablecoin Payment Platform

vivian 2 June 2025
SOLANA PRICE ANALYSIS IMAGE
  • Analysis

Solana Faces Pressure Below $160 with Support at $155 and $152

Cal Evans 2 June 2025

For general inquiries, please email us at Info@cryptonewsfocus.com

Crypto news focus is your day-to-day crypto news site. Get all the latest News and trends in the crypto, blockchain, and DeFi space. For more info and inquiries, reach out via email at info@cryptonewsfocus.com

You may have missed

Cardano ADA under the sand
  • Analysis

Cardano Hits 110 Million Transactions as DeFi and NFT Adoption Grow

Sean Williams 2 June 2025
Ripple Logo on a black background
  • News

Ripple Challenges SWIFT with XRP and RLUSD Stablecoin Payment Platform

vivian 2 June 2025
SOLANA PRICE ANALYSIS IMAGE
  • Analysis

Solana Faces Pressure Below $160 with Support at $155 and $152

Cal Evans 2 June 2025
Ethereum ETH coin on a blackish background
  • News

SEC Questions Legality of Ethereum and Solana ETFs with Staking Features

Sean Williams 2 June 2025

Social Media

Crypto News Focus © All rights reserved | MoreNews by AF themes.
Go to mobile version
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok