ETH Price Could Crash Despite Spot Ethereum ETFs Euphoria, Analyst Explains Why

Share This Post

With the Spot Ethereum ETFs expected to begin trading on Tuesday, July 23, expectations for the ETH price have shot up drastically. Numerous analysts and market experts have come forward to predict that it would be a great development for the ETH price, pushing it to new all-time highs. However, one analyst has warned investors to exercise caution during this time as the Spot Ethereum ETFs going live may not have the expected effect immediately.

Why The Spot Ethereum ETFs May Lead To A Decline

While the Spot Ethereum ETFs going live for trading have been well-received by the crypto community, crypto expert Benjamin Cohen has pointed out another alarming development that could send the ETH price crashing. This time, it is the ETH supply increasing rapidly.

In the X (formerly Twitter) post, Cohen points out that the ETH supply had turned inflationary once again. For reference, the Ethereum Merge previously made the ETH supply deflationary, with burns from transactions sending hundreds of thousands of ETH to the dead wallet.

However, recently, with activity falling to new lows on the Ethereum network, the supply has turned inflationary as there isn’t enough transaction fees being burned to outpace new supply. More specifically, the crypto expert revealed that the supply had gone up by 60,000 ETH in just one month.

Now, if the supply continues to increase at this rate, Cohen explains that it will take only until December for the supply to get back to where it was before the Merge was completed. Unless there is a reversal and the supply turns deflationary once again, this new supply could undermine the inflows from Spot Ethereum ETFs and push the ETH price down instead.

Spot ETH ETFs Trading Draws Closer

Last week, the Chicago Board Options Exchange (CBOE) announced that a total of five Spot Ethereum ETFs will go live for trading on July 23, 2024. These funds include Fidelity (FETH), VanEck (ETHV), 21Shares (CETH), Invesco (QETH), and Franklin Templeton (EZET), all of which will be vying for the top spot.

So far, there has been a fee battle, with each fund trying to outdo the other with lower fees. For example, the Franklin Templeton fund is offering a low fee of 0.19%, beating out Bitwise and VanEck’s 0.2% and coming ahead of BlackRock, Fidelity, and Invesco Galaxy, which have set their fund fees at 0.25%.

Like many others, the Bitwise CIO Matt Hougan, has expressed optimism as Spot Ethereum ETFs are set to begin trading. Hougan predicts that these funds could see up to $15 billion in inflows in less than two years after they launched.

Ethereum price chart from Tradingview.com (Spot Ethereum ETFs)

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Crypto CEO Falls: AML Bitcoin’s Founder Faces 30 Years for Fraud and Laundering

A cryptocurrency CEO has been convicted of wire fraud and money laundering after deceiving investors, raising millions through false claims, and laundering funds for personal luxury purchases AML

Bitcoin Price Above $100,000 Again? Chart Patterns Show What’s Coming Next

Crypto analyst Madden has raised the possibility of the Bitcoin price rallying above $100,000 again, providing a bullish outlook for the flagship crypto His analysis showed what is coming next for

Layer-3s are a necessary innovation in crypto

The following is a guest post from Rob Viglione, CEO at Horizen Labs If we had stopped at dial-up internet, we’d never have gotten Netflix, real-time gaming, or cloud computing The evolution of

Pi Coin Price Prediction: Is $3 Still Possible After 20% Dip?

The post Pi Coin Price Prediction: Is $3 Still Possible After 20% Dip appeared first on Coinpedia Fintech News The price of Pi Network’s token, Pi has recently experienced major selling pressure,

Bitcoin Bullish Trend In Jeopardy As BTC Price Stumbles Near $85,211

Bitcoin’s recent price movement near the $85,211 level has revealed several technical red flags, suggesting potential weakness in its bullish momentum Despite multiple attempts to break through

‘Ripple is Never Going to Win’: Popular Author Questions XRP’s Real Use Case

The post ‘Ripple is Never Going to Win’: Popular Author Questions XRP’s Real Use Case appeared first on Coinpedia Fintech News Despite ongoing legal battles, Ripple’s XRP token continues to