The anticipation surrounding the launch of the Ethereum (ETH) exchange-traded fund (ETF) has reached its peak, with experts speculating about its potential launch date.

Industry analysts are increasingly confident that this ETF could debut as early as mid-July, marking a significant milestone for the crypto market.

Institutional Interest in Ethereum

AMBCrypto reported that Chief Investment Officer (CIO) of Bitwise, Matt Hougan, has expressed strong confidence in the appeal of Ethereum to institutional investors, a sentiment that has not been universally shared until now.

In a video with analyst Scott Melker, Hougan highlighted observations from the European and Canadian markets.

"Ethereum consistently attracts significant investments, [there] will be similar success in the US market," Hougan revealed.

Challenging the Correlation Narrative

Hougan also challenges the prevailing narrative of a high correlation between crypto and traditional financial markets.

He argues that, apart from brief alignment periods due to extraordinary economic measures as recently observed, crypto generally operates independently from traditional markets.

This independence is crucial for investors seeking diversification and risk-adjusted returns.

Current Challenges for the Ethereum Market

Amid a broader market decline, Ethereum's performance mirrors the decline seen in Bitcoin, with ETH prices falling approximately 6.2% in the last 24 hours to the current trading price of US$3,139. This significant drop has led to substantial losses for many traders.

Data from Coinglass revealed that in the last 24 hours, 113,506 traders have been liquidated, contributing to a total liquidation of US$317.34 million.

Out of this figure, Ethereum-related liquidations amounted to around US$76.51 million, primarily in long positions, totaling US$70.16 million compared to US$6.35 million in short positions.

Increased Volatility and Liquidations

Exacerbating the situation, market intelligence platform Santiment has reported a decline in open interest in Ethereum.

Furthermore, data from CryptoQuant highlights that the Estimated Leverage Ratio of Ethereum on all exchanges has increased significantly to 0.392.

This indicates a rise in leverage positions relative to the asset's market capitalization, which may signify an increased risk of volatility or further liquidations.