The introduction of Ethereum ETFs in the US market has resulted in substantial market changes, with the Grayscale Ethereum Trust (ETHE) losing more than $800 million since its establishment.
The inherent unpredictability and intricate nature of crypto ETF launch events resulted in a significant withdrawal of $26.7 million over two days, causing a sharp decline in the price of Ethereum.
Although Fidelity’s Ethereum ETF received an investment of $74.5 million and Grayscale’s Ethereum Mini Trust received $45.9 million, the general sentiment remained pessimistic, resulting in an 8% decrease in Ethereum’s price during the past 24 hours, bringing it down to a trading value of $3,190.
The fall can be attributed to the simultaneous introduction of Bitcoin and the distribution of Bitcoin from the now-defunct Mt. Gox, which intensified the selling pressure.
The US technology earnings season has commenced with a lackluster start, as prominent businesses such as Alphabet and Tesla have witnessed a decline in their stock prices following the release of their quarterly reports.
Another aspect believed to impact the value of Ethereum is the absence of sufficient marketing endeavors. Traditionally, the introduction of crypto frequently leads to initial excitement, which is then followed by rapid profit-taking, commonly referred to as a ‘sell-the-news’ occurrence. The Grayscale Ethereum Trust (ETHE) has lost more than $800 million since it was established.
