#BullMarket & #ETF (4)

Investors in markets like the US, where ETFs are available, have more liquidity, and increased buying and selling pressure has less impact on the price of the relevant crypto.

But on the other hand, there are also negative consequences.

When buying crypto from ETF issuers, they often buy in bulk, amounting to billions of dollars, so they own the majority of the crypto supply and can be subject to speculation. Additionally, if an ETF issuer is forced to sell crypto it holds due to poor business conditions, it can also have an impact on the price of the relevant crypto.

The interaction between ETFs and their respective cryptos can be studied by looking at the Bitcoin and Ethereum ETFs that are already on the market.

There are also groups interested in launching ETFs for altcoins like SOL, XRP, and BNB in the near future, so these ETFs could take the same form as Bitcoin and Ethereum ETFs, and could be a boost to the price.

ETF issuers also benefit from ETF AUM (Assets Under Management) fees, and the earlier a crypto ETF is launched, the more users it will generate, both in terms of profits and awareness.

Therefore, it is likely that there will be competition for ETF services, and the crypto industry will likely become an increasingly competitive market in the future.