Ethereum ETFs may not cause upward surge in ETH price as many expect

The upcoming launch of Ethereum ETFs may not have the anticipated effect of driving up the price of ETH, according to analysts. While the SEC dropped its investigation into Ethereum 2.0 and the excitement around spot ETH ETFs led to a 4% increase in ETH’s price, there are factors that could limit the expected price surge. One factor is the increased implied volatility of Ethereum, which may be misleading as institutions could employ a cash-and-carry arbitrage strategy when spot ETH ETFs are launched. This strategy involves gaining exposure to spot ETH through ETFs and then shorting its equivalent futures contract, potentially leading to sideways price movement for ETH. Additionally, the SEC has not explicitly declared ETH a commodity, and there is still uncertainty surrounding the actual inflows and volume of ETH ETFs compared to BTC ETFs. Overall, while the launch of ETH ETFs is highly anticipated, its impact on the price of ETH may not be as significant as some expect.