According to Cointelegraph: Ether (ETH) Price Boosted as Interest in Hong Kong Spot ETH ETF Surges
The price of Ether (ETH) is on the rise today, aided by increased interest in the recently launched spot ETH ETF in Hong Kong and expectations of less stringent U.S. monetary policies. Following a 14.2% drop from April 28 to May 1 that saw Ether's value touch a low of $2,817, the cryptocurrency experienced a subsequent 6.4% surge between May 1st and May 2nd, coming close to $3,000.
While persistent inflation in the U.S. and a less-than-anticipated Q1 growth of 1.6% are among the weaker macroeconomic conditions contributing to the cryptocurrency market downturn, the launch of Hong Kong's spot cryptocurrency instruments on April 30 seemed to invigorate the market. These spot Ethereum ETFs saw net inflows of $44 million on their first trading day, signifying interest despite the lukewarm sentiment towards U.S. spot Bitcoin ETFs.
Furthermore, with the U.S. SEC's deadline on the spot Ethereum ETFs imminent (the verdict on the VanEck Ethereum ETF requests is due by May 23), Ethereum's network activity has seen a boost. Significant growth of Ethereum DApps, including a 31% increase for Balancer, 21% for Curve, and a substantial 57% rise for Dodo, has enhanced market sentiment and strengthened support at the $2,800 level.
Lastly, U.S. Federal Reserve Chair Jerome Powell's announcement suggesting peak interest rates have been reached at 5.5% further fueled Ether's price. Consequently, with less appeal for fixed-income investments relative to inflation, the market is predicted to pivot towards riskier asset classes - with cryptocurrencies like Ether standing to benefit.
