Jim Cramer Claims ETH Was “Bid Up” Before ETF Debut

Ethereum exchange-traded funds (ETFs) make their historic debut on U.S. markets. This landmark event has drawn attention from investors, analysts, and media personalities alike, including CNBC’s Jim Cramer, who has made a key statement regarding the ETF debut. As these new financial products hit the trading floor, they bring with them a mix of excitement, skepticism, and market volatility.

Jim Cramer’s Observations To Initial Trading

Jim Cramer, CNBC host has made a notable claim regarding Ethereum’s recent price action in light of the debut of spot Ethereum exchange-traded funds (ETFs) in the United States. Cramer stated, “The fact that ETH is selling off is just a testament to how much it had been bid up,” suggesting that the cryptocurrency’s price had been artificially inflated in anticipation of the ETF launch.

This comment comes as the first-ever spot Ethereum ETFs began trading in the U.S. on Tuesday morning at 9:30 a.m. EST. The launch follows the U.S. Securities and Exchange Commission’s approval, which allowed S1 registration statements to become effective on Monday afternoon. This approval marked the final sign-off for funds representing the world’s second-largest cryptocurrency to begin trading on major U.S. exchanges.

Despite Jim Cramer’s observation of a selloff, the initial trading volumes paint a different picture. Within the first hour of trading, U.S. spot Ethereum ETFs reportedly saw a total transaction volume exceeding $100 million. Data shared by analyst Eric Balchunas reveals that Grayscale’s ETHE is leading the pack with $39.7 million in trading volume.

Other notable performers include Bitwise’s ETHW ETF, which accumulated $25.5 million in volume within first hour of launch, closely followed by BlackRock’s ETHA at $22.5 million. Fidelity’s FETH also made a strong showing with $15.2 million in trading volume within the time duration.

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Potential Risks and Market Impact

VanEck advisor Gabor Gurbacs has raised concerns about potential risks associated with the majority of spot Ethereum ETF issuers in the United States using Coinbase as their asset custodian. This concentration of funds with a single custodian could potentially create systemic risks or vulnerabilities in the market.

The Securities and Exchange Commission (SEC) approval of spot Ethereum ETF listings has generally driven up market sentiment, reflecting the significance of this development for the cryptocurrency ecosystem.

The introduction of these ETFs represents a major step forward for Ethereum and the broader cryptocurrency market. It opens up new avenues for investors to gain exposure to Ethereum through traditional financial instruments. However, as Cramer’s comments and Gurbacs’ concerns suggest, the market’s reaction to this development may be more complex than initially anticipated.

Also Read: Swiss Banks Replacing US Banks For Crypto Payments After FTX Collapse

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