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(ETH) price shot higher over the last 48 hours, driven by favorable regulatory developments that boost the chances of an ether exchange-traded fund (ETF) being approved soon.

Nevertheless, the chances of a major "buy the rumor, sell the fact" reaction for ETH seem lower compared to , according to a recent Citi report.

Bitcoin dropped 17% after ETF approval due to the hype and leveraged bets. In contrast, the potential approval of an ETH ETF has been less expected, leading to less extreme pre-positioning, the report says.

Upon the release of these reports, ETH futures open interest (OI) and funding rates were subdued compared to previous months. However, OI has started to increase, indicating rising anticipation of a potential ETF approval.

Net flows into Bitcoin ETFs have been a major driver of returns since their launch in January, explaining much of the cryptocurrency's performance. This trend is likely to continue with the introduction of ETH ETFs, indicating that overall crypto ETF flows will remain important for returns.

Reports indicate that robust conversations are ongoing behind the scenes between regulators and ETF providers, which include nine fund providers with applications pending at various stages. Past approvals for Bitcoin ETFs suggest that simultaneous launches for ETH ETFs are likely.

Historical data from Citi shows that net flows into spot Bitcoin ETFs materially influence cryptocurrency returns. For instance, net BTC ETF inflows totaled $12.9 billion through May 20, translating to a roughly 6% rally in Bitcoin per $1 billion of flow. Assuming similar market-cap-adjusted flows for ETH, estimated inflows could range between $3.8 billion to $4.5 billion, potentially driving ETH prices up by 23-28%.

Several factors could impact these estimates, including differing demand for ETH compared to BTC, rotation from BTC to ETH among existing ETF holders, outflows from existing ETH funds upon conversion, and rapid positioning build-up ahead of SEC approval.

In the long term, Citi analysts said that Bitcoin and Ethereum are expected to remain highly correlated, driven by macroeconomic factors. Despite differing on-chain activity and potential use-cases, such as Bitcoin's role as "digital gold" and Ethereum's smart contract functionality, sentiment, adoption, and further use-case development remain crucial for both cryptocurrencies.

"We expect the major tokens to remain highly correlated and continue to be driven by macro forces over the longer term," Citi memo concludes.

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Citi discusses Ethereum ETF: Buy the rumor, sell the fact? - Investing.com

Amid increasing speculation about the possible approval of a spot Ether exchange-traded fund (ETF) in the United States on May 23, global investment manager VanEcks ETF has been listed by the Depository Trust and Clearing Corporation (DTCC) under the ticker symbol ETHV.

The DTCC is an American financial market infrastructure provider that offers clearing, settlement and transaction reporting services to financial market players. A listing on DTCC is considered a crucial step before final approval from the U.S. Securities and Exchange Commission (SEC).

VanEcks ETF is currently designated inactive on the DTCC website, meaning it cannot be processed until it receives the necessary regulatory approvals. However, VanEck is not the first Ether (ETH) ETF listed by the DTCC. Franklin Templetonsspot ETH ETF was listed on the platform a month ago.

The DTCC said that the ETF list includes both active ETFs that may be processed by the DTCC and ETFs that are not yet active and, therefore, cannot be processed.

Another report suggested that SEC officials contacted Nasdaq, the Chicago Board Options Exchange and the New York Stock Exchange to update and change existing spot Ether ETF applications.

Related: Crypto insiders anxious and divided as spot Ether ETF decision date looms

The significant change in the SECs stance over the past week is speculated to be linked to the White House.

Crypto lawyer Jake Chervinsky noted in a post on X that policy is driven by politics, and for months, crypto has been winning the political battle. He also speculated that former president Donald Trumps endorsement of cryptocurrency compelled the administration of President Joe Biden to shift its policy.

May 23 is the final deadline for the SECs decision on the VanEck spot Ether ETF application. After months of speculation about a probable denial of spot ETH ETFs, the SEC took action earlier this week.

The SEC firstasked financial managers to amend and refile their 19b-4 filings on their proposed spot Ether ETFs. Some analysts saw the move as a positive sign, swinging the potential chance of approval to 75% from 25%.

Magazine: What do crypto market makers actually do? Liquidity, or manipulation

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Ethereum ETF confirmed? VanEck spot Ether ETF listed by DTCC - Cointelegraph

14h38 4 min of reading by Luc Jose A.

From groundbreaking announcements, technological progress, and regulatory turmoil, the crypto ecosystem continues to prove that it is both a landscape of boundless innovation and a field of regulatory and economic battles. Heres a summary of the most noteworthy news from the past week surrounding Bitcoin, Ethereum, Binance, and Solana, among others.

Donald Trump recently expressed strong support for the cryptocurrency industry during an event at Mar-a-Lago, criticizing the Biden administration for its hostility towards this sector. He promises to foster the adoption of cryptos in the United States if he is reelected in 2024. Trump contrasts his economic vision and financial freedom to the Democrats skepticism about the risks of crypto. The 2024 election is seen as pivotal for the regulatory future of digital assets in the United States. Bidens policy currently aims to curb the rise of decentralized cryptocurrencies.

Pension funds, traditionally cautious, are beginning to take an interest in Bitcoin ETFs. Major asset managers like Fidelity and BlackRock are now openly discussing with these institutional investors. The interest of pension funds, with assets over 4000 billion dollars, could significantly propel the Bitcoin market. Even a small allocation of these funds to Bitcoin could result in a massive influx of capital into the crypto market. This development could cement the adoption of cryptocurrencies by the general public and traditional institutional investors, marking a turning point towards the maturity of the crypto market.

VanEck has introduced an index dedicated to memecoins, called the Marketvector Meme Coin Index, focusing on six main memecoins with a maximum weighting of 30% each. This index aims to provide a structured approach to evaluating these often volatile assets. The selection of memecoins for the index is based on various parameters such as current price and historical performance, with monthly revisions to maintain representativity. VanEcks initiative could draw more serious investors toward the memecoin market. This innovation marks an important step towards the maturity of the cryptocurrency market by providing more sophisticated analytical tools for these digital assets.

Mastercard is partnering with banks like Citi and JPMorgan to transform crypto transactions through the tokenization of assets, using a shared ledger to improve the security and efficiency of transactions. Mastercards Regulated Settlement Network (RSN) project aims to establish a legal framework to integrate these innovations into the digital economy. Institutions like Swift and Deloitte are also involved, highlighting the importance of this global initiative. In the United States, the debate over central bank digital currencies (CBDCs) continues, with privacy concerns. The project aspires to a future where financial transactions are instant and secure, thus redefining the standards of global finance.

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Diplm de Sciences Po Toulouse et titulaire d'une certification consultant blockchain dlivre par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'conomie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet cosystme en constante volution. Mon objectif est de permettre chacun de mieux comprendre la blockchain et de saisir les opportunits qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualit, de dcrypter les tendances du march, de relayer les dernires innovations technologiques et de mettre en perspective les enjeux conomiques et socitaux de cette rvolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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Bitcoin, Binance, Ethereum, and Ripple: The biggest crypto news of the past week - Cointribune EN

Ether (ETH) is struggling to maintain the $3,000 support level, experiencing a 4.1% decline in just two days. The bearish momentum appears to be influenced by several factors, including the delay in launching an Ethereum spot exchange-traded fund (ETF) in the United States, decreased network usage, and a notable decrease in the ETH burn rate. As a result, Ether's price has dropped by 15% since April.

Investor sentiment has been further dampened by remarks made by Susan Collins, the Boston Federal Reserve Chair, who suggested that resilient inflation may force the central bank to maintain higher interest rates for an extended period. According to Yahoo Finance, Collins' speech on May 8 highlighted the need for slower economic growth to reduce demand. As long as interest rates remain above inflation, there is less incentive for individuals and companies to take out loans for consumption or production.

On one hand, the potential negative impact on corporate earnings could benefit alternative assets such as cryptocurrencies. However, if investors fear a significant recession, many are likely to seek refuge in fixed-income and cash positions. The increased stock buybacks in the U.S. market, driven by well-capitalized companies, further complicate Ether's recovery path. Despite potential earnings growth, buybacks reduce sell pressure and compensate for a stagnant economy.

While Ether's performance might be influenced by the 3% correction in the total cryptocurrency market capitalization since May 6th, other altcoins like BNB (BNB), Tron (TRX), Cardano (ADA), and Litecoin (LTC) have outperformed Ether by 3% or more during the same period. Even when compared to Bitcoin (BTC), Ether's price has lagged by 1.5%. This suggests that there are factors specific to Ether that are negatively impacting its price.

The possibility of an Ethereum U.S. ETF approval was dampened after the SEC postponed its decision on the Invesco and Galaxy Digital proposal on May 6th, extending the deadline until July 2024. Moreover, the refusal of U.S. SEC Chair Gary Gensler to clarify whether Ethereum could be considered a security during his appearance on CNBC's Squawk Box on May 7 has further eroded investor confidence in the ETF's prospects. Gensler's appearance followed six crypto-related lawsuits in 2024.

On-chain analysis for Ethereum has been unfavorable in recent weeks. According to ultrasound.money, the burn mechanism for Ether has hit its lowest levels in 2024.

The EIP-1559 protocol burns a fraction of the gas fees per transaction, so lower network demand leads to a higher ETH supply growth. The latest data shows an ETH 4,853 burn in 7 days, significantly lower than the ETH 17,628 issued in the same period. Although the 12,774 ETH supply increase in the past 7 days represents a mere 0.57% annualized inflation, the issue with Ethereum network's lesser use becomes more concerning when considering its second layer scaling solutions.

Related: Public blockchain ledgers not fit for purpose, says JPMorgan

The decline in Ethereum's demand has impacted its ecosystem, including projects like Arbitrum, Base, Polygon and ZkSync Era. In contrast, Solana and Thorchain have shown increased activity. Similarly, Sui and Avalanche experienced a comparatively smaller decline in decentralized exchange (DEX) volumes compared to other platforms.

The exact reasons behind investors' decision to sell Ether are unclear. However, there seems to be reduced confidence in the U.S. approving an Ethereum spot instrument. Additionally, recent network health metrics for Ethereum have deteriorated. The uncertainty surrounding recent regulatory actions against the crypto industry, including Consensys, may also help explain the weakness in Ethereum's price.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Why is Ethereum (ETH) price down today? - Cointelegraph

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Ethereum Bounces Strongly While Stacks Remain In The Red; Rebel Satoshi Sets The Stage For 100x Memecoin Gains - Crypto News Flash