The landmark approval of eight spot Ether ETFs by the U.S. Securities and Exchange Commission was expected to send Ethereum prices soaring. However, ETH remains stagnant. Why?

Zach Rynes, a crypto commentator, suggests that the lack of movement reflects a market phenomenon where those keen to invest have already done so, anticipating the approval.

It also reminds us of what happened after Bitcoin’s ETF approval, right?

Before the ETF approval, Ether had already surged by 29% following rumors of the SEC’s favorable stance. This pre-emptive buying spree left little room for a significant price jump post-announcement.

Additionally, while the ETFs are approved, they are not yet operational. Launching requires an S-1 filing, detailing financials and risk profiles, which could take weeks or even months to finalize. So the approval doesn’t mean that Ethereum ETF begin to function.

Rynes and analysts from Second Mountain highlight that the real price impact will come with ETF inflows once trading begins. Historical data offers a precedent: Bitcoin’s price dropped initially post-ETF approval before rallying 30% within a month.

Another factor tempering Ether's price is the potential outflows from Grayscale Ethereum Trust as it transitions into a spot Ether ETF. The crypto community recalls the $17.6 billion asset decline in Grayscale Bitcoin Trust following Bitcoin ETF approvals.

In essence, the current Ether price stagnation reflects a mix of pre-emptive market moves and regulatory delays. Investors remain cautious, awaiting the actual market dynamics that these ETFs will introduce.