Jim Cramer Calls Ethereum “Bid Up” as Ether ETFs Go Live
- Jim Cramer asserts that Ethereum’s price was propped up before the ETF launch.
- The notoriously wrong analyst claimed Ether ETFs were “selling off” on debut.
- Shocking trade volumes exceed expectations, but not all Ether ETFs are in profit.
As the second largest digital asset exchange-traded funds (ETFs) are seeing their debut day, renowned financial experts are chiming in to offer their take on this special occasion. Jim Cramer , the notoriously wrong CNBC Mad Money host, has once again stunned the crypto community with a rather discouraging opinion on Ethereum (ETH).
Why Is Cramer Calling Ethereum Overpriced?
“The fact that Ether is selling off is just a testament to how much it had been bid up, not really anything significant,” the veteran financial analyst stated in reference to Ether’s price surge before official approval of Ether Spot ETF products by the Securities and Exchange Commission (SEC).
The main financial regulator of the United States cleared all ETF applications on May 23, 2024, paving the way for the issuance of Ether ETFs today. This surprised the general crypto crowd, as most industry figures were betting on the SEC to reject the initial applications.
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That day, ETH skyrocketed to $3,913, claiming a quarterly top at $3,946 four days after the SEC’s announcement. However, the breakout was followed by a market correction.
ETH comfortably entered July 2024, contesting the $3,500 resistance levels, but later formed a double bottom pattern at $2,858 and $2,865 on July 5 and July 8, respectively. According to Cramer, the unexpected approval of all Ether Spot ETF products drove Ether’s run to nearly $4K.
Are Ethereum ETFs Overshadowing Bitcoin?
With the successful debut in traditional finance, Ethereum Spot ETFs are predictably the talk of the crypto town this week. With a positive balance of $107M on the first day, ETF trading has brought a profit of $590 million, excluding Grayscale’s Ethereum Trust. Similarly to when Bitcoin ETFs were launched, the largest asset manager dropped the ball with a $484M negative flow on the first day.
In contrast, BlackRock’s iShares Ethereum Trust ETF (ETHA) earned $266.5 million, while BitWise’s ETHW earned $204 million during the same time frame.
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Naturally, this has produced a gargantuan trading volume, with $120 million coming in the first 15 minutes. As reported by Bloomberg’s Senior ETF analyst, Eric Balchunas, this Ethereum ETF trading tsunami on arrival day puts Ether Spot ETFs in the top 1% of all publicly traded ETFs.
On the Flipside
- Contrary to Cramer’s claims, Ethereum was not “selling off” amidst Ether’s ETF trading session.
- According to Farside investor’s tracking sheet, the opening day for Ether ETFs recorded an inflow of 106.6 ETH.
Why This Matters
Exchange-traded funds based on popular crypto efficiently bridge the gap between digital and traditional finance.
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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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