Ethereum (ETH) Faces Uncertain Future: Spot ETF Hopes Linger, Price Slips

The future of a spot Ethereum ETF remains unclear after Grayscale Investments withdrew its application for a futures-based product.

Arslan Butt•Thursday, May 9, 2024•1 min read

Ethereum (ETH) Faces Uncertain Future: Spot ETF Hopes Linger, Price Slips

The future of a spot Ethereum ETF remains unclear after Grayscale Investments withdrew its application for a futures-based product. Grayscale CEO Michael Sonnenshein emphasized their commitment to converting the Grayscale Ethereum Trust (ETHE) into a spot ETF, mirroring their successful conversion of the Bitcoin Trust (GBTC). However, the SEC has yet to approve any spot Ethereum ETF applications, including those from major players like Blackrock and Fidelity.

Ethereum Inflation Concerns Emerge After Dencun Upgrade

Analysts are raising concerns about Ethereum’s inflationary status following the Dencun upgrade in March 2024. The upgrade, designed to reduce transaction fees, may have unintentionally lowered the amount of ETH burned, potentially undermining its claim to be a deflationary asset.

ZKasino Scam Funds Partially Recovered, But Questions Remain

A glimmer of hope emerged for victims of the ZKasino exit scam as over $20 million in bridged Ether (ETH) was returned to the project’s wallet. While the motive behind the return remains unclear, it raises the possibility of partial refunds. Dutch authorities previously arrested a suspect believed to be involved in the scam.

Ethereum Price Grinds Lower, Key Support Levels Tested

Ethereum’s price continues its downward trend, dipping below the crucial $3,000 mark. Analysts point to a potential rebound if resistance at $3,000 and $3,030 is breached. However, failure to overcome these hurdles could lead to further losses, with major support levels at $2,940 and $2,880.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.