Ethereum ETF Approval Fails to Spark Immediate Price Surge

Despite the historic approval of Ethereum Exchange Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) on Thursday, both Bitcoin (BTC) and Ethereum (ETH) prices saw declines in the last 24 hours.

Market Reaction to Ethereum ETF Approval

This unexpected market reaction is attributed to a "buy the rumors, sell the facts" strategy by speculators, according to Alex Kuptsikevich, a senior market analyst at FxPro. He suggests the price of ETH could fall back to the $3000 region, a significant consolidation area from which institutional investors can begin building positions in ETFs.

This isn't the first time the crypto market has reacted this way. Kuptsikevich points to a similar trend following the approval of the Bitcoin ETF in January, which saw the price drop 19% in the two weeks following before making a significant comeback.

While the SEC's approval of form 19B-4 for Ethereum ETFs represents a major milestone for the second largest cryptocurrency, it's important to note that these ETFs are not yet available for trading. Funds still require approval of S-1 filings before investors can purchase them.