Ethereum Price Plunges Amid ETF Outflows
Ethereum (ETH) saw a significant drop of more than 8% as U.S. spot Ethereum exchange-traded funds experienced over $133 million in outflows on the second day of trading. This resulted in Ethereum prices hitting a low of $3,156 on major exchanges.
Spot Ethereum ETF Fund Outflows
The new ETF initially attracted more than $106 million in cumulative inflows on its first day. However, on the following day, the total outflows from Grayscale’s Ethereum Trust (ETHE) surpassed total inflows, resulting in a net outflow of $133.3 million. This trend has led to ETHE’s two-day outflows exceeding $810 million, with the fund’s net assets currently standing at $8.04 billion.
Looking at the performance of other spot ether ETFs, Fidelity’s FETH saw substantial inflows of $74.5 million on the second day, while Bitwise and BlackRock’s ETHA also had varying levels of inflows. As a result of these outflows, the total net assets of spot Ethereum ETFs decreased from over $10.2 billion to approximately $9.54 billion.
Cryptocurrency Liquidations and Market Impact
The cryptocurrency market experienced liquidations totaling $290 million, with Ethereum and Bitcoin contributing significantly to this figure. ETH’s price currently hovers around $3,179, marking an 8% decline in the past 24 hours. The market capitalization of cryptocurrencies fell by 4% in just one day, influenced by various factors including the launch of the Ethereum ETF and Mt. Gox repayments affecting Bitcoin.
In conclusion, the recent outflows from Ethereum ETFs and subsequent market impacts highlight the volatility and interconnected nature of the cryptocurrency ecosystem. Investors and traders are advised to closely monitor these developments and adapt their strategies accordingly.
