10x Research: Ether may collapse amid ETH-ETF launch

Many traders expected ETH-ETFs to capture 20% of inflows into spot bitcoin-ETFs, while underestimating the implementation of the exchange's “sell the news” rule, analysts said.

10x Research cited outflows from ETHE (Grayscale fund) of $481 million and $326 million in the first two days of trading, respectively. According to experts, such a rapid sell-off of start-up investments indicates a lack of confidence in the sustainable growth of the asset. Specialists noted the overbought nature of ether on the eve of the launch of the ETH- ETF.

“Ether may be the weakest link where fundamentals such as earnings are stagnant or declining,” 10x Research explained.
While bitcoin enjoys the status of “digital gold,” Wall Street investors have yet to decide on the value of the second most capitalized cryptocurrency, the experts added.
Earlier, Into The Cryptoverse founder Benjamin Cowen said that the ether exchange rate could fall within six months after ETH-ETFs lose their novelty.