Markets
Cryptocurrency markets fall as Ethereum Spot ETFs debut
Ethereum spot ETFs launched amid slowdown in major cryptocurrencies.
Cryptocurrency markets fell Tuesday after Ethereum spot exchange-traded funds (ETFs) began trading.
The price of Bitcoin (Bitcoin) fell 0.6% over the past 24 hours to last trade at $66,626 as of noon New York time, according to CoinGecko.ETH) was trading flat below $3,500. Solana (GROUND) and polka dots (POINT) fell by 1.8% and 4.3% respectively.
Ethereum ETFs have debuted, after the U.S. Securities and Exchange Commission (SEC) green light Final S-1 registration statements were filed on July 22, paving the way for these ETFs to go public. The list of approved issuers includes heavyweights like BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck and Invesco Galaxy.
A promising start
Bloomberg ETF analyst Eric Balchunas predicted a promising start for BlackRock’s iShares Ethereum Trust (ETHA), estimating that its trading volume could reach around $50 million in the first hour.
“Using BlackRock’s ETF as a proxy, ETHA volume after the first hour will be around $50 million,” he said. said“If the price goes above $200 million by the end of the day, it will exceed our “20% of BTC” estimate (given that IBIT hit $1 billion on its first day). Sounds promising, but who knows.”
Michael Van de Poppe note The ETF launch was a significant event, noting that within the first 15 minutes, the ETH ETF managed to reach 50% of Bitcoin’s first-day volume, totaling $112 million.
“The $ETH ETF is doing insane numbers,” he said. “The first 15 minutes already account for 50% of Bitcoin’s first day in terms of volume: $112 million. The Ethereum ETF launch is highly undervalued and I expect it to trade towards an ATH in the next 1-2 months.”
Liquidations and cash inflows
CoinGlass Data noted 55,689 traders were liquidated in the last 24 hours, totaling $141 million in liquidations. Bitcoin and Ethereum each accounted for $32 million in liquidations.
Crypto funds saw inflows of $1.35 billion last week, bringing total inflows over the past three weeks to $3.2 billion.
Ethereum funds have seen their largest outflows since August 2022, totaling $61 million. Over the past two weeks, outflows have reached $119 million, making Ethereum the worst performing asset year-to-date in terms of net flows, according to to CoinShares.
Mt. Gox Moves More Bitcoin
Adding to the market activity, Mt. Gox resumed fund transfers on July 23, transferring more than 47,500 Bitcoins — worth nearly $3.2 billion — to two unknown addresses.
According to According to Arkham Intelligence, Mt. Gox currently holds approximately 42,744 BTC, valued at approximately $2.85 billion.
This comes after a refund statement published on July 5, where Mt. Gox announced its intention to “promptly” repay creditors. The repayment plan involves distributing more than $9 billion in Bitcoin (BTC) and $73 million in Bitcoin Cash (BCH) to affected merchants in the coming months.
Meanwhile, U.S. stock markets jumped on Tuesday, with the S&P 500, Nasdaq Composite and Dow Jones Industrial Average each up 0.10%.