Altcoin shaking... Ethereum ETF trading forecast as early as July ↓

Major altcoins are showing a downward trend. Even with the news that an Ethereum spot exchange-traded fund (ETF) could be listed in the U.S. as early as next month, they seem to be unable to keep their head.

As of 10:45 am on the 19th, according to CoinMarketCap, the prices of major altcoins except Ethereum have been falling for the past week. Binance Coin (BNB) fell 0.26% from 7 days ago to $591.27, and Solana (SOL) fell 5.39% to $138.02. During the same period, Dogecoin (DOGE) fell 8.33% and ADA (ADA) fell 7.45%, trading at $0.1238 and $0.3859, respectively. The decline of Shibainu (SHIB) and Avalanche (AVAX) is larger. During the same period, SHIB fell 12.84% to $0.00001845, and AVAX fell 13.45% to $26.76.



It is interpreted that as Bitcoin (BTC) recently fell to the $65,000 level, it also had a negative impact on altcoin prices. According to Coinglass data, due to this drop, approximately $180 million (KRW 248.184 billion) worth of leveraged derivatives trading positions across all virtual assets were liquidated in 24 hours as of the 15th (local time). Most of these were long positions, betting on long-term upside.

The U.S. Federal Reserve System (Fed) proposed one interest rate cut this year in a dot plot released by the Federal Open Market Committee (FOMC) last week. The change in the Federal Reserve's position, which had hinted at interest rate cuts three times within the year at the beginning of the year, affected the investment confidence of short-term investors who had expected monetary policy easing.

There is also analysis that the altcoin market has frozen as financial authorities recently announced a review to maintain the listing of virtual assets listed on domestic exchanges. According to the industry, financial authorities have decided to review whether to maintain the listing of virtual assets currently traded on domestic exchanges. The decline in altcoins continues amid concerns that a large number of virtual assets that do not meet the requirements may be delisted.

Altcoins are not responding to the good news that the Ethereum spot ETF may be traded in the United States as early as next month. On the 14th (local time), Bloomberg analyst Eric Balchunas said, “It is highly likely that the Ethereum spot ETF will begin trading on July 2,” ahead of his previous expected date. If the controversy over the securities nature of other virtual assets is resolved with the Ethereum spot ETF, other altcoin ETFs may also appear one after another. U.S. investment bank TD Cowen diagnosed that “the Ethereum ETF paves the way for more virtual asset ETFs.”

Expectations are rising as Solana, Ripple, etc. are pointed out as the next hitters, but counterarguments are also being raised that it is unlikely that an altcoin ETF other than Ethereum will be approved. “Given the U.S. Securities and Exchange Commission’s (SEC) position that most virtual assets should be classified as securities, I am skeptical that the SEC will approve Solana or any other altcoin ETF,” said Nicolas Panigirzoglu, global markets strategist at JP Morgan. . He added, “It would be possible if the U.S. government finally passes a bill that makes it clear that most virtual assets are not securities, but currently, no such bill exists.”

Reporter Do Yeri

yeri.do@decenter.kr