Under the stimulus of rumors of Ethereum ETF approval, the enthusiasm in the digital currency market remained high this week. Following the largest increase in 18 months on Monday, Ether continued to lead on Tuesday, with the largest intraday increase reaching 8.6%.
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Overnight, Bitcoin surged to near $72,000, then gave back gains and closed near flat. However, it is worth noting that this is the sixth consecutive day of net inflows into Bitcoin ETF.
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Media reports cited multiple sources saying that the U.S. SEC has requested Nasdaq, Cboe, and NYSE to adjust their Ethereum ETF listing applications on Monday, indicating that the SEC may be preparing to approve these applications.
The latest development is that SEC officials have requested the above exchanges to submit their applications by Tuesday at the latest. The SEC must decide this week whether to approve the Ethereum ETFs issued by VanEck and ARK Investments/21Shares.
Although the Ethereum ETF is still in the first step of the application process, it may already signal a significant and unexpected victory for the cryptocurrency industry, far beyond the original expectations.
However, the future direction of the cryptocurrency industry remains unknown.
<h2>Key &#34;Turning Point&#34; Before Price Surge OR Industry Starting to &#34;Implode&#34;?</h2>
First of all, industry insiders believe that the launch of Ethereum ETF may lead to a surge in market demand, resulting in a supply shortage of Ether.
Joe Lubin, co-founder of Ethereum and founder of the crypto infrastructure company Consensys, stated that institutions that have gained Bitcoin exposure through newly launched Bitcoin ETFs &#34;are likely to want to diversify their investments into the second approved cryptocurrency ETF.&#34;
He also believes that &#34;buying Ether through ETFs will put considerable pressure on the market,&#34; and compared to when the Bitcoin ETF was approved in January this year, the current market supply may find it more difficult to meet the strong market demand.
In other words, in a situation of supply shortage, the price of Ether may become more sensitive to fund inflows, and locked-up Ether cannot be used to meet the additional demand from ETFs, further exacerbating the supply shortage
More importantly, as the trading activities on Ethereum become more active, some mechanisms will consume a large amount of existing Ether, exacerbating the already tight supply and pushing up the price of Ether. Furthermore, mainstream financial institutions are showing significantly increased acceptance of cryptocurrencies, hoping to invest in cryptocurrencies through ETFs. In this scenario, the supply shortage of Ethereum ETFs may become more severe.
Lubin stated that for Ether and the entire cryptocurrency industry, &#34;this could be a crucial turning point&#34;.
However, some analysts believe that the launch of Ethereum ETFs may lead to &#34;internal competition&#34; within the industry.
Economist and gold enthusiast Peter Schiff has warned that the launch of Ethereum ETFs may have a negative impact on spot Bitcoin ETFs and Bitcoin itself, as market funds may shift from Bitcoin ETFs to Ethereum ETFs

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The launch of Ethereum ETF may herald a key "turning point" before the surge in cryptocurrency prices, or it may signify the beginning of industry "cannibalization"

What does the consecutive second day of sharp rise in ETFs for Ethereum and Bitcoin mean?