When we got the $BTC Bitcoin ETF we saw ourselves hit a rally but that really was for the most part already in play just based on pure speculation that the ETFs would be approved in the first place. What we have seen happen with Bitcoins ETF and also can be researched and looked at in terms of how it played out and apply some of those same things towards Ethereum.

With the news of the Ethereum ETF being approved we did see a small jump in price that's help pretty steady over the last few weeks.

That marker is just before the spot Ethereum ETF was approved so you can see the big jump but it's since tapered off.

So what's the explain this why has Ethereum pretty much done nothing since the ETF was approved?

The Approval Process

That comes down to you guessed it the SEC once again. Even though a ETF is approved it can take months for the ETFs to fully be approved and then launched on the open market. Also since many ETFs are being filed for the same thing in order to create a more fair playing field a batch of these will be approved and go live at the same time (now that's at least something I can get behind that the SEC does right and trust me that list is extremely short) You know the stuff the SEC is actully suppose to do.

This approval process is slated to take place during these summer months but it also seems like we wont see a full release of this until September of this year. That's nearly 3 months away and is perfect time to grab up some $ETH if you feel like the ETFs going online finally are going to cause a spike in price or not.

Clearing Houses

We can look at Bitcoins ETF process and get a good understanding here as well. While we did see a spike on BTC it didn't hold and has since fallen pretty flat holding bitcoin prices between that low 60's and high 70's mark.

This is mainly because of what we are hearing out of Fidelity. That most major firms, banks etc are waiting for clearing houses which have to get their ducks in a row first before they can really pull the trigger on this.

Instead what's happening is a primary amount of investing is actully happening by retail investors right now. Which makes sense when you step back and start to look at it all. This means all of that money tied up into 401ks can now be invested into bitcoin but I wouldn't expect a ton. If anything I think we would be lucky to see 1%-5% of all 401k money to be dumped into crypto.

The Game Plan

So right now the play is going to be watching the approval of the S-1 ETFs for Ethereum. Once we see that trigger we could see prices star to spike in anticipation of them going live very soon as well as when they do go live.

The big question for me is just what exactly is that Ethereum going to do that big institutions old. Will they be required to hold it all or can they stake some of it or put a wait period on it and stake it and earn profits from it something like you see places like Coinbase doing as they collect a fee from the staking rewards.

It's unclear at the moment but I think it's an important question to ask being that Ethereum will be the first proof of stake token to have a ETF format.

What are you thoughts?

Posted Using InLeo Alpha