Despite the recent approval of spot Ethereum ETFs by the SEC, the outlook for a smooth launch and significant ETH price increase seems less certain based on its futures.
The delay in individual fund approvals by the SEC and potential outflows from a high-fee Grayscale conversion are creating investor hesitation. This is reflected in ETH price stalling below $3,900.
Some analysts suspect political motives behind the SEC's approval, while others believe a pragmatic approach based on Bitcoin ETF regulations played a bigger role.
The debate revolves around whether derivatives indicate buying pressure or price suppression due to launch delays.
President Biden's recent actions suggest a challenging regulatory environment for cryptocurrencies, further amplifying the uncertainty.
The lack of significant funding costs in perpetual contracts and the decline in the premium of monthly futures suggest a wait-and-see approach from traders. This could be due to concerns beyond the ETF launch, such as recent international crypto crackdowns.
Overall, ETH futures do not indicate strong confidence in a significant price increase powered by US spot ETFs. A near-term price jump above $4,000 appears unlikely. Traders are likely to remain cautious in the current market conditions, with many waiting to see how the regulatory landscape changes before making any significant moves.
