Messages about the launch of ETH-ETF have had a positive impact on the market.
Against the announcement of the start date for trading spot Ethereum ETFs on CBOE, digital gold stabilized above $66,000.
According to the exchange, the listing of the product from Franklin Templeton and four other instruments is scheduled for July 23. Prior to this, the SEC approved applications for mini Ethereum ETFs from Grayscale and an exchange-traded fund from ProShares.
On the evening of July 19, the crypto market began active growth. Bitcoin tested the $67,000 level but then corrected to $66,500. The asset rose by 4.5% within 24 hours.
Ethereum ended up slightly weaker than the first cryptocurrency. The coin gained 2.3% over 24 hours and is currently trading around $3,500 at the time of writing
Other assets from the top 10 by market capitalization also entered the "green zone." XRP showed the strongest growth of the day, increasing by 8.2%.
According to Coinglass, the volume of liquidations over the past day reached $149.3 million. Of these, $96 million came from short positions.
Despite the positive factor of exchange-traded funds, the second largest cryptocurrency by market capitalization may face a supply crisis.
According to the analyst and founder of Into The Cryptoverse, Benjamin Cowen, the price of Ethereum risks declining if supply continues to grow at current rates following the initial hype around ETFs.
He claims that the number of new coins is increasing by approximately 60,000 ETH every 30 days over a period of four months. The Merge hard fork reduced the total supply by 455,000 ETH by April, but the figure could return to previous levels as early as December, warned the expert.
"If you ignore monetary policy because you think it doesn't matter, you might consider 2016. For the ETH/BTC pair, there was a false breakdown below lows in the second quarter of 2016, followed by a real capitulation in the fourth. Could we see the same this year?" speculated Cohen.
While the CEO of Into The Cryptoverse believes that by the end of 2025 the price of ETH is likely to "be higher than current," there is potential for a decline over the next "three to six months."
On July 16, analyst Leon Vaidman warned that Ethereum is facing a "supply crisis."
"The exchange balance [in ETH] has decreased to 10.2%, while 39.3% of assets are locked in smart contracts. Most investors still do not realize how limited the coin supply is and how significant the effect of ETF will be," he stated.
Recall that QCP Capital forecasted Ethereum to rise to $4800 after the approval of ETH-ETF. Experts believe that demand equivalent to 10-20% of inflows into Bitcoin funds will trigger positive movement.
