Ethereum
ETH price drops 10% as Ethereum spot ETFs see $133M in outflows on second day
The second day of spot Ethereum ETF trading was quite different from the first, as over $133 million was withdrawn from the largest financial vehicles.
The price of the underlying asset reacted with a massive drop that saw it fall 10% in one day, proving early reports that the approvals could prove to be a sell-the-news moment.
CryptoPotato reported Ethereum spot ETFs had a strong first day of trading yesterday (July 23), with over $106 million invested in total. BlackRock’s ETHA and Bitwise’s ETHW led the pack with $266.5 million and $204 million, respectively.
They even managed to reduce the impact of Grayscale’s ETHE outflows, as $484 million came out of the converted fund.
However, the landscape of July 24 was entirely differentGrayscale’s product saw $326.9 million in outflows, but demand for other ETFs fell short and overall withdrawals for the day climbed to $133.3 million. Only Fidelity’s FETH had an impressive day with $74.5 million in inflows.
As expected, ETH price suffered from the disappointing performance of the recently launched products. The asset fell from nearly $3,500 to a multi-day low of $3,130 earlier today, marking a 10% decline.
Ethereum/Price/Chart 25.07.2024. Source: TradingView
Despite recovering some ground since then, ETH is still down 8% on the day and sits below $3,200. Over $100 million worth of ETH longs have been destroyed in the past day, representing a third of the total amount ($292 million to date).
Let us recall that there were several reports ahead of the launch of the Ethereum ETF, which suggested that upcoming products will initially become a time for selling the news.