Cryptocurrency Market Sees Red as Bitcoin and Ethereum Prices Fall

The cryptocurrency market has taken a hit this week, with Bitcoin and Ethereum prices falling by 5.4% and 4.4% respectively. The prices of altcoins have been a mixed bag, with Cardano rising by 1.3%, Solana nudging higher by 0.3%, and Dogecoin jumping by 0.2%. On the other hand, XRP fell by 3.9%, Shiba Inu by 4.3%, and BNB by 4.3%.

Cryptocurrency market prices have been volatile this week.

SEC Chair Gary Gensler Expresses Confidence in Spot Ether ETF Approval

Speaking at the Bloomberg Investment Summit, SEC Chair Gary Gensler expressed confidence in the approval process for spot Ether ETFs. Although he refrained from giving a specific timeline, Gensler said the process was “going smoothly.”

“I don’t know the timing, but it’s going smoothly,” Gensler said. “It’s really about the asset managers making full disclosure so that those registration statements can go effective.”

“I don’t know the timing, but it’s going smoothly. It’s really about the asset managers making full disclosure so that those registration statements can go effective.” - Gary Gensler

Spot Ether ETFs Inch Closer to Approval

Spot Ether ETFs are inching closer to approval in the U.S. after the Securities and Exchange Commission (SEC) approved initial filings from issuers last month. The final approval of the much-awaited ETF is expected during the summer.

Ethereum logo

The approval of Ether ETFs would be a major milestone that would legitimize Ethereum as an alternative asset class, potentially attracting substantial inflows from both retail and institutional investors.

Analysts Predict Inflows of up to $35 Billion

Bitwise Chief Investment Officer Matt Hougan predicts that Ether spot ETFs might rake in as much as $35 billion in total inflows within 18 months, which would translate to $15 billion in net inflows.

“U.S. investors currently have $56 billion invested in spot Bitcoin ETPs. I suspect this will reach $100 billion or more by the end of 2025, as these ETFs mature and are approved on platforms like Morgan Stanley and Merrill Lynch.” - Matt Hougan

However, other analysts beg to differ, suggesting that Ether spot ETFs may see less demand than bitcoin ETFs. For instance, JPMorgan believes that spot Ether ETFs won’t attract as much demand as bitcoin ETFs because the latter has a much stronger “safe haven” appeal, thanks to its first-mover advantage.

Bitcoin and Ethereum prices have been volatile this week.

Bernstein analysts argue that the absence of a staking feature in the ETF could hinder more significant inflows into Ether spot ETFs.

“ETH should not see as much spot ETH conversion due to the lack of an ETH staking feature in the ETF.” - Bernstein analysts

The approval of Ether ETFs is expected to be a significant milestone in the cryptocurrency market, and it will be interesting to see how it plays out in the coming months.