On August 24, two more Ethereum futures exchange traded fund (ETF) applications were filed with the US Securities and Exchange Commission, adding a dynamic twist to the world of cryptocurrencies. This scenario sees the number of Ethereum ETF candidates grow, while the price of Ethereum remains low.
The most recent filings are the result of a collaboration between ARK Invest and 21Shares, both well-known firms in the crypto investing space. These two proposals, dubbed "ARK 21Shares Active Ethereum Futures ETF" (ARKZ) and "ARK 21Shares Active Bitcoin Ethereum Strategy ETF" (ARKY), demonstrate the rising interest in providing investors with an ETF path into the Ethereum universe.
While this dynamic team first collaborated to propose a spot Bitcoin ETF in 2021, none of their spot applications were approved by the SEC. Meanwhile, the number of Ethereum-related ETF applications has risen to over 16, with ideas ranging from pure Ethereum to Ethereum-Bitcoin hybrids. The forthcoming mid-October decision dates for several of these applications promise to be a watershed event in the cryptocurrency world, perhaps resulting in a favorable market movement.
While the ETF battle heats up, Ethereum's price trend portrays a less rosy picture. At the time of writing, Ethereum had retraced approximately 1% and was trading at $1,659, levels similar to those seen in February. Over the last two weeks, Ethereum's value has dropped by more than 10%, coinciding with a retreat from its long-standing support level of $1,850.
A number of causes have contributed to Ethereum's decline. Notably, the SEC-Ripple litigation has revealed behind-the-scenes conversations over Ethereum's regulatory status. This news has sparked a wave of concern among investors, influencing market sentiment and fueling the current downward trend.
Bitcoin's price changes have significant sway over the larger market as the cryptocurrency's poster child. Ethereum's price performance parallels that of Bitcoin, and recent falls in the Bitcoin market have thrown a shadow on Ethereum's price performance.
A complex mosaic of regulatory uncertainty, Ethereum-specific issues, the negative Bitcoin trend, and larger macroeconomic trends explains Ethereum's present downward direction. While the market awaits regulatory clarification and navigates ongoing obstacles, Ethereum's destiny hangs in the balance, waiting for events that might ignite a recovery or prolong the current drop.