NEW YORK, May 24, 2024 - Bitcoin (BTC) and ether (ETH) experienced declines in the past 24 hours, despite the recent approval of several ether exchange-traded funds (ETFs) for listing on U.S. exchanges. Ether has fallen by 4% since the approval, reversing part of a 20% gain seen over the past week amid speculation about the ETFs. The CoinDesk 20 index, which tracks major cryptocurrencies, dropped 4.5%, and the overall crypto market capitalization decreased by 2.9%, settling at $2.5 trillion.

Alex Kuptsikevich, a senior market analyst at FxPro, described the sell-off in Ethereum following positive news as a typical "buy the rumor, sell the fact" reaction. He suggested that a pullback to the $3,000 level could occur, potentially setting the stage for institutional investors to build positions in ETFs. Kuptsikevich noted a similar pattern after the approval of the Bitcoin ETF in January, which saw a 19% price drop before a significant rebound.

The U.S. Securities and Exchange Commission (SEC) has approved regulatory filings for eight ether ETFs from major firms including VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy, and BlackRock. While the ETFs have been cleared for listing on Nasdaq, NYSE Arca, and Cboe BZX exchanges, they are not yet approved for trading. The SEC still needs to approve the funds' S-1 filings before investors can purchase them.

If the ETFs receive trading approval, a substantial influx of institutional capital is anticipated, with Standard Chartered predicting up to $45 billion in inflows within the first year. Some traders are optimistic about a potential rally for ether, projecting a 60% increase in the coming months, driven by heightened demand in futures and spot markets.