Investors witnessed a shift in market dynamics recently when bearish sentiment overshadowed bullish momentum in the Bitcoin market. This shift was prompted by panic selling actions by Mt. Gox in BTC, coinciding with regulatory developments from the US and German governments. Consequently, the BTC price plummeted to $53,400 levels observed in February. The downward trend also impacted altcoins, notably Ethereum, which saw a 9% decline to $2,850.

The dip in ETH value occurred amidst speculations surrounding the awaited approval of spot ETFs by the SEC. Analysts like James Seyffart from Bloomberg and Nate Geraci, the president of ETF Store, anticipated the SEC to greenlight the S-1 applications by July 15.

As the potential approval date looms, senior ETF analyst Eric Balchunas from Bloomberg shared insights on Bitcoin and Ethereum. In a conversation with Cointelegraph, Balchunas hinted that forthcoming spot Ethereum ETFs might fall short in comparison to the remarkable capital inflows witnessed by spot Bitcoin ETFs.

Balchunas suggested that ETH ETFs could play a secondary role in the market, trailing behind Bitcoin's dominance. He emphasized the challenge in explaining Ethereum to traditional retail investors, considering its tech-centric nature compared to Bitcoin's digital gold narrative.

The US SEC Chairman, Gary Gensler, had mentioned in a late June statement that progress was smooth towards launching spot Ethereum ETFs. However, Gensler refrained from specifying whether ETH ETF trading would commence before the upcoming US elections in November.

*Disclaimer: This content does not constitute investment advice.