The second day of trading for the spot Ethereum ETFs was quite different than the first as more than $133 million were withdrawn from the largest financial vehicles.
The underlying asset’s price reacted with a massive price drop that drove it south by 10% in a day, thus proving the initial reports that the approvals might turn out to be a sell-the-news moment.
CryptoPotato reported yesterday that the spot Ethereum ETFs had a solid first day of trading (on July 23) when more than $106 million poured in as a whole. 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 the outflows from Grayscale’s ETHE, as $484 million exited the converted fund.
However, the landscape on July 24 was entirely different. Grayscale’s product had $326.9 million in outflows, but the demand for the other ETFs was missing, and the overall withdrawals for the day soared to $133.3 million. Only Fidelity’s FETH had an impressive day with $74.5 million in inflows.
Somewhat expected, ETH’s price suffered due to this underwhelming performance by the products that were just launched. The asset tumbled from almost $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 8% down on the day and sits below $3,200. Over $100 million in long ETH positions have been wrecked in the past day, which is a third of the entire amount ($292 million as of now).
Recall that there were several reports ahead of the spot Ethereum ETF launch that suggested the upcoming products will become a sell-the-news moment at first.
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