Ethereum ETFs: A New Era for Crypto?

The recent approval of spot Ethereum ETFs in the US has sent shockwaves through the crypto community. However, despite this major milestone, Ether’s price has failed to soar. In this article, we’ll explore the reasons behind this unexpected phenomenon and what it means for the future of cryptocurrency.

Inflation Fears Weigh on Ether’s Price

According to Noelle Acheson, former head of market insights for Genesis Global Trading, Ether’s price is being bogged down by persistent inflation fears. The release of the S&P Global’s purchasing managers’ index (PMI) showed “quite stunning” numbers, indicating that the US economy is in full expansion, with the manufacturing sector joining services in keeping inflation high.

Inflation fears are weighing on Ether’s price.

The Federal Reserve has kept interest rates relatively high to fight inflation, which has deterred investors from piling into risk-on investments like crypto and tech stocks. Instead, they can earn high yields from risk-free Treasuries.

High interest rates are keeping investors away from crypto.

Crypto Market Movers

Bitcoin is down 2.9% in the last 24 hours, trading at $68,000. Ethereum slumped 2.3% in the same period, to $3,840.

The crypto market is feeling the pressure.

What’s Next for Ethereum?

While the approval of Ethereum ETFs is a significant step forward, it’s clear that the crypto market is still vulnerable to global macro forces. As inflation fears continue to weigh on the market, it’s uncertain when Ether’s price will start to rise again. One thing is certain, however: the crypto community will be watching closely.

The future of Ethereum hangs in the balance.