Ether ETFs Launch Strong, Despite ETH Price Decline

Ethereum exchange-traded funds (ETFs) debuted impressively in the United States, recording a net flow of $1.1 billion on their first day of trading. Despite this significant milestone in the crypto industry, the ETH price experienced a slight decline.

The initial trends indicate that Ether might face further corrections as the newly converted Grayscale Ethereum Trust saw substantial outflows on its opening day. These withdrawals contributed to the increasing selling pressure in the market.

Ether ETF is off to a solid start

Analyst James Seyffart reported that Ether ETFs manage $10.2 billion in assets across nine approved investment products. The cumulative trading volume on the first day exceeded $1.1 billion, marking a robust start. The total net flow remained positive at $107 million, even though Grayscale’s ETHE faced a significant outflow of $484 million. BlackRock’s iShares Ethereum Trust ETF (ETHA) led the market with $266.5 million.

Despite the strong debut, Ether’s market index declined, with its price dropping marginally over the last 24 hours. ETH’s price fell from the $3,500 mark, contributing to an 8% decline over the past 60 days. Its 24-hour trading volume decreased by over 6% to $21.05 billion, and it currently holds a market cap of $416 billion.

Bulls bleed as ETH price drops

Data from Coinglass revealed that approximately $46 million worth of long and short positions in Ether were liquidated in the last 24 hours. Notably, $37.52 million (81%) of these liquidated bets were long positions. This indicates that traders had anticipated a price surge with the launch of the ETH ETF, but the ETH price faced significant resistance.

The broader crypto market experienced a sluggish start to the week, with Bitcoin failing to maintain its $67,000 position. Despite this, BTC’s price increased by 2.5% over the last seven days, primarily driven by bullish sentiment from Bitcoin ETFs.

Bitcoin ETF inflows decline

The latest data shows that Bitcoin ETFs broke their 12-day inflow streak. Investors withdrew $78 million from these investment products, with Bitwise’s BITB seeing a net outflow of $70 million and Ark’s ARKB ranking second with $52 million. Grayscale also faced an outflow of $27 million.

This decline follows a solid inflow of more than $420 million into Bitcoin ETFs last Monday and Friday. Despite the strong debut of Ether ETFs, the overall market sentiment remains cautious. Substantial outflows from significant funds indicate a potential correction period for Ether and Bitcoin. Traders and investors must monitor these trends closely as they navigate the evolving landscape of crypto ETFs.

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