Analysis: Compared with Bitcoin spot ETF, the probability of correction after Ethereum spot ETF is approved for listing is smaller

ChainCatcher news, according to Cointelegraph, cryptocurrency trader Matthew Hyland said in an article on May 24: “I think there is a possibility of a sell-off in the Ethereum spot ETF (approved for listing) compared to the Bitcoin spot ETF. Less sexual,”

It noted that unlike Ethereum, Bitcoin had not experienced a price drop in the period before the SEC approved a Bitcoin spot ETF on January 10. “The Bitcoin ETF was approved without a pullback in the months preceding it. When the Grayscale Bitcoin Spot ETF went public the next day, selling pressure began. Since the Spot Bitcoin ETF’s launch, according to Farside, GBTC has seen a net outflow of $17.6 billion.

Ethereum was down 15% in two months through May 20 until reports emerged that the U.S. SEC may have shifted its stance toward approving an ETF, with Ethereum surging 29% in three days shortly after the news broke.

This is despite concerns that Grayscale plans to convert its Ethereum Trust (ETHE) into an ETF, which could lead to selling pressure and price impact.

Hyland said, "A key similarity is that both have Grayscale products. The Grayscale ETF caused selling pressure on Bitcoin, and the same will likely happen with the Ethereum ETF once the product comes to market."