Analysis: Compared to Bitcoin spot ETFs, Ethereum spot ETFs have a lower probability of a pullback after being approved for listing

ChainCatcher news, according to Cointelegraph, cryptocurrency trader Matthew Hyland stated in an article on May 24: "I believe that the likelihood of a sell-off for an Ethereum spot ETF (if approved) is lower compared to a Bitcoin spot ETF."

He pointed out that, unlike Ethereum, Bitcoin did not experience a price drop during the period before the SEC approved the Bitcoin spot ETF on January 10. "There was no pullback in the months leading up to the approval of the Bitcoin ETF. When the Grayscale Bitcoin spot ETF launched the next day, the sell-off pressure began. According to data from Farside, there has been a net outflow of $17.6 billion from GBTC since the launch of the spot Bitcoin ETF.

As of May 20, Ethereum had fallen 15% over two months, until reports emerged that the U.S. SEC may have shifted its stance towards approving the ETF. Shortly after the news broke, Ethereum surged 29% within three days.

Despite concerns that Grayscale plans to convert its Ethereum Trust (ETHE) into an ETF, which could lead to sell-off pressure and price impact.

Hyland stated, "One key similarity is that both have Grayscale products. The Grayscale ETF led to sell-off pressure for Bitcoin, and once the product is launched, the same could happen for the Ethereum ETF."