Ethereum ETF approved = greed is GOOD
We're at that stage of the cycle.
The Ethereum ETF was approved yesterday, but funny enough, the price pumped 30% before that moment. Insiders knew first, as usual.
Make no mistake. This is profit driven and has little to do with fundamentals. Thanks to Bitcoin, TradFi realized there is a new market they can dominate and profit from. 24/7.
More altcoins will follow. The gates of greed are now fully open. TLDR at the end.
Until most recently, the idea of an Ethereum ETF was laughed at with odds in favor at under 25%. The SEC refused to declare ETH a security or an asset and left that question opened. More on that later.
Suddenly this week, the odds flipped with approval imminent. The price pumped 20% in a few hours and ETH closes the week with a 30% pump. What changed?
BlackRock joined the crypto casino. Since then, crypto ETF have been rolling after they were denied for over 10 years. First was Bitcoin in January and now Ethereum. How many more will follow?
If there is money to be made, expect an ETF. Even DOGE qualifies.
Greed is back on the menu and this new emerging market just got the attention of the big players that won’t let retail have all the fun. If you find yourself overwhelmed by greed, then I recommend you join our community and its patrons group. With 10 different ETH ETFs, greed is at an all-time high!
The ETFs were definitely a bullish event as the BTC and ETH price charts prove. However, it won’t last. ETFs can also sell, not just buy. In a bear market, there are profits to be made by shorting.
There will be plenty of that later and BlackRock and their friends will not hesitate to make a killing on the way up, and also, on the way down. As this tweet shows, BlackRock doesn’t even need to hold BTC or ETH to buy or sell them.
We call that naked longs or shorts. Essentially BlackRock can buy and sell Bitcoin and Ethereum using the ETFs without even holding the underlying asset for a period of time. They buy and sell fake BTC and ETH. Those coins don’t even exist on the blockchain!
The problem with that is it will impact the price, even if those trades don’t move one coin on the blockchain. Starts to sounds fishy right? Welcome to Traditional Finance or TradFi! It’s been happening for decades.
Such practices will control the price of Bitcoin and Ethereum. This is one of the risks with ETFs. Before crypto ETFs, price discovery was mostly free and happened on Binance (guess why they got attacked hard?) and a few other big exchanges with liquidity.
Long-term, Bitcoin’s price will go higher due to its fundamentals and fixed supply of coins. If BlackRock or anyone trades with coins they don’t have, eventually they will need to buy them to cover their trades and there are only 21 million coins on offer. This may lead to some interesting price dynamics later.
For Ethereum, the story is slightly different because it has no maximum supply of coins and lately it has been inflationary again. This may create a different price dynamic long-term. Most altcoins ETFs will likely be similar, but as more crypto ETFs get approved, dilution will make them rather irrelevant.
Don’t fall for the ETF trap with other altcoins.
Bitcoin is unique with or without an ETF. Ethereum is the second largest cryptocurrency with or without an ETF. These facts make them valuable, not the ETF. The ETF allows more people to buy and sell them. That’s it.
Moreover, many would argue Ethereum is a security. A quick look at this old video where Vitalik shills the ETH pre-sale explains why. However, with the ETF approval we got confirmation the market and its regulators don’t care. They will likely not care about many altcoins either. Why?
They want to capture this market and its volatility (read it as profits). This is also a sign of a maturing market that comes with pluses and minuses. If you are after a 100x, don’t expect to find it using a crypto ETF.
Greed is a wonderful thing because it fuels this market. But as it happened every cycle it has an expensive price for those late to the crypto casino. They end up paying the bill while those that enjoyed the party are long gone.
Probably a good sign for a top in this cycle is when questionable altcoins like Solana get an ETF approved. You should be long gone by then and hold real Bitcoin in your wallet, not an ETF.
TLDR & Tips to Remember
TradFi and its regulators decided to capture crypto via ETFs
Greed fuels this drive and is motivated by profits
The Ethereum ETF approval will likely lead to more altcoin ETFs
If an altcoin gets an ETF it does not mean it is a good investment, likely not
When more questionable altcoins get their own ETFs, that’s your exit signal
Long-term, Bitcoin will continue to make new highs regardless of its ETF
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All info is provided for educational purposes only and is not financial advice.
As a matter of debate. ETH will likely continue to be deflationary because of network growth and platform utilization, and PoS. These alone are likely going to be driving the price of ETH higher - and now even more with the ETFs driving demand.
Is it really all the ETH for the ETFs already in cash somewhere? I’d like to understand that fact.