Ethereum Down 5% as ETF Trading Volume Drops

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As a seasoned crypto investor with several years of experience under my belt, I’ve seen my fair share of market fluctuations and hype surrounding new developments. The recent downturn in Ethereum’s market, following the lackluster performance of the newly launched ETFs, is a reminder of the volatile nature of this space.

The demand for Ethereum in the market has dropped off following a noticeable decrease in trading activity for the newly introduced ETFs. Initially, there was great enthusiasm for these new offerings, which resulted in a robust beginning. However, this initial buzz has faded away rather swiftly.

Due to recent developments, Ethereum’s (ETH) price has declined by 4.8% within the last 24 hours, now being sold at approximately $3,180. The trading volume for Ethereum has also diminished, dropping down to around $25 billion.

During their initial release, the ETFs experienced substantial trading activity, recording a total of one billion dollars in transactions. The Grayscale Ethereum Trust (ETHE) was the frontrunner with inflows amounting to $461 million, while BlackRock’s iShares Ether Trust (ETHA) came in second with $244.7 million in investments, and Grayscale’s smaller ETF added $63.8 million.

Within the next two days, there was a significant withdrawal of $346 million from Grayscale’s ETHE, causing noticeable market turbulence.

Additionally, Coinglass’s data indicated a decrease of 10.83% in Ethereum’s total trading volume to $39.83 billion, while options trading volume experienced a significant drop exceeding 50%.

In the face of these obstacles, an uptick in open interest for alternatives and favorable long/short positions on prominent exchanges such as Binance and OKX implies that certain investors retain confidence in potential market upward trends.

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2024-07-26 03:48