Binance: ETH prices may be more sensitive to ETF inflows than BTC, leading to more volatile price fluctuations
ChainCatcher news, Binance stated in a blog post that the approval of a spot ETH ETF is expected to significantly increase demand and drive up the price of Ether, similar to the trend with Bitcoin ETFs. Due to staking and smart contracts tightening the supply of ETH on exchanges, the price of ETH may be more sensitive to ETF inflows than BTC, potentially leading to more volatile price fluctuations.
The SEC's restrictions on staking ETH held by ETFs may lead savvy cryptocurrency investors to prefer direct staking, which could suppress some demand for ETFs while catering to different investor audiences.
ChainCatcher reminds readers to view blockchain rationally, enhance risk awareness, and be cautious of various virtual token issuances and speculations. All content on this site is solely market information or related party opinions, and does not constitute any form of investment advice. If you find sensitive information in the content, please click "Report", and we will handle it promptly.
