Ethereum (ETH) prices were little changed during morning European trading hours on Wednesday, hovering around $3,445 despite a strong opening day for the spot Ethereum exchange-traded fund (ETF).
Price movement has been sluggish even as the new U.S. investment vehicle attracted more than $1 billion in trading volume on Tuesday.
According to data from CoinGecko, Ethereum is trading at $3,445, down 0.5% in the past 24 hours, with trading volume reaching $23.7 billion. In the 24-hour price range, ETH has fluctuated between $3,403.72 and $3,534.98.
Cryptocurrency market data provider Kaiko report Despite the Spot Ethereum ETF attracting over $1 billion in trading volume on its first day, spot ETH trading volume on centralized exchanges remained largely unchanged.
Source: Silkworm
However, they noted an interesting change in market trends, with ETH trading volume against Bitcoin increasing from 22% to 41%, suggesting accelerating trading activity in the ETH market.
In the shared notes DecryptionConsenSys CEO Joseph Lubin stressed the importance of greater Ether ownership to decentralize the ecosystem, but cautioned that the approval does not signal a fundamental change in the SEC’s approach to crypto regulation, noting the ongoing legal battle between the industry and regulators.
“To further decentralize the Ethereum ecosystem, it’s important that more individuals and organizations can own Ethereum,” he said. “As Ethereum’s working token and currency, ETH is the lifeblood of Web3 and is powering countless permissionless innovations on the Ethereum network.”
Anthony Pompliano, CEO of Professional Capital Management, said that while the Bitcoin ETF saw significant inflows compared to its launch earlier this year, the approval of an Ethereum ETF is “not about Ethereum, it’s about the market.”
in interview and CNBCPompliano suggested that this development is indicative of a broader trend of crypto assets flowing into Wall Street.
Pompliano noted that the market reaction was relatively muted, pointing out that it received less media attention compared to the launch of a Bitcoin ETF.
He said this is because Ethereum’s story as a technology platform is more complicated, as opposed to Bitcoin’s clearer “digital gold” story, but stressed that Ethereum’s potential for portfolio diversification may be attractive to traditional investors.
Editor: Stacey Elliott.
