ETH Price Drops 10% as Spot Ethereum ETFs See $133M in Outflows on Day 2

The second day of trading for spot Ethereum ETFs was quite different from the first, as more than $133 million was withdrawn from the largest financial vehicles.

The price of the underlying asset reacted with a massive price drop that took it south by 10% in a day, thus proving initial reports that the approvals could turn out to be a selling news moment.

CryptoPotato reported yesterday that Ethereum ETFs had a solid first day of trading (July 23rd) when more than $106 million was poured in collectively. 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 exits, as $484 million came out of the converted fund.

However, the landscape on July 24 was completely different. Grayscale’s product had outflows of $326.9 million, but it lacked demand from the other ETFs and total withdrawals for the day soared to $133.3 million. Fidelity’s FETH alone had an impressive day with $74.5 million in inflows.

Somewhat expected, the price of ETH suffered due to this underwhelming performance of newly launched products. The asset fell from nearly $3,500 to a multi-day low of $3,130 today, marking a 10% decline.

Ethereum/Price/Chart 07/25/2024. Source: TradingView

Despite recovering some ground since then, ETH is still down 8% on the day and sits below $3,200. More than $100 million in long ETH positions have been wiped out in the last day, which is a third of the total amount ($292 million so far).

Remember that there were several reports before the launch of the Ethereum ETF that suggested that the upcoming products will become a news selling time at the beginning.

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