- Approval odds for Ethereum ETFs have fallen below 25% in Polymarket.
- Vijay Boyapati predicts that May’s rejection of ETH ETF could benefit BTC.
The general market is leaning towards a possible US spot Ethereum [ETH] Rejection of ETF applications in May.
According to the prediction markets platform PolymarktETH ETF May approval bets are down 68% and had a 24% chance at the time of writing.
Bloomberg ETF analysts Eric Balchunas and James Seyffart, who correctly predicted the US spot Bitcoin [BTC] ETF approval reflects Polymarket’s sentiment.
In a recent one after On
“Eric said ‘Silence is violence’ last week during a client call regarding the #ethereum ETFs and I loved it.”
Seyffart responded to Balchunas’ statement that SEC did not provide “critical feedback” even during face-to-face meetings. This meant that the chances of approval in May were still low.
Will BTC Benefit From Ethereum ETF May Rejection?
With May fast approaching and approval odds looking elusive, says Vijay Boyapati, commentator and author of ‘The Bullish Case for Bitcoin’ claimed That,
“All the money that flowed into ETH because of ETF hopium will go back into Bitcoin once the Ethereum ETFs are all rejected.”
For Boyapati’s prediction to come true, the dominance of the ETH market will have to decline significantly as BTC rises.
According to CoinMarketCapAt the time of writing, BTC’s market dominance stood at 52.4%, mainly due to strong ETF flows over the past three months. ETH’s market dominance was 16.5%.
Should Boyapati’s thesis be confirmed, ETH market dominance could fall below 16% or 15% as the market readjusts to the ETH ETF rejection in May. If so, capital rotation could be driving BTC momentum.
Meanwhile, ETH was above a crucial weekly bearish order block (3.2K-3.5K). It consolidated around the local top of the first quarter of 2022. A drop below 3.2K could lead to bears overwhelming the market, especially if ETH ETF applications are rejected.