EthHub co-founder: The main risk of ETH at present is the possible outflow of funds from Grayscale ETHE
EthHub co-founder sassal.eth stated on social media that ETH rose from $3,000 to $4,000 in one day, basically completing the price trend of the "pre-ETF approval" months in one day (because until May 20, most people thought that ETH ETF was rejected).
Since the approval of the ETF on May 23, ETH's price has fallen by 20%, which is similar to the situation where BTC sold off 20% after the ETF was approved on January 10. Now, we are waiting to see if ETH will follow the same path in the coming weeks and set a new historical high. I know that BTC ETF started trading from day one, while ETH ETF has not yet traded, although I don't think this is as important as the future narrative/market.
I think the main risk for ETH at present is the possible outflow of Grayscale ETHE funds, but the trading discount rate of ETHE in the past few months has been below 2% (now it is a premium), and I don't know how many people are still waiting to sell after converting to ETF? And we don't know how much the cost of converting ETHE to ETF will be (it may be much lower than expected, or free of charge for a period of time, in order to introduce people to its mini trust fund).
In summary, I think there is no fundamental reason to be bearish about the future. Stocks are at historical highs, interest rate cuts are likely to appear on the horizon, cryptocurrencies face a lot of regulatory good news, and the United States may soon become a more crypto-friendly regulatory agency, of course, ETH ETF will finally start trading this month.
Your main goal in the cryptocurrency field remains the same: to survive.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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