**News Flash: Ethereum ETF Launch Sparks Market Sell-Off**
The much-anticipated launch of the Ethereum exchange-traded fund (ETF) initially brought excitement but quickly led to a sell-off, causing Ether's price to drop. According to 10x Research, this pattern mirrors previous crypto ETF launches, including Bitcoin (BTC).
Markus Thielen from 10x Research noted that traders expected Ethereum ETFs to capture significant inflows but overlooked potential outflows from Grayscale and the typical "sell the news" reaction. The crypto market is also entering a seasonally weak period.
The launch coincided with BTC distributions from Mt. Gox, adding to the selling pressure. Grayscale’s Ethereum exchange-traded note saw substantial outflows, while Bitwise recorded inflows, primarily from Pantera Capital, which quickly sold off its investment.
The 10x report suggests a bearish outlook on Ether, indicating it was overbought before the ETF launch. ETH's price has fallen nearly 8% in the last 24 hours, stabilizing around $3,181. Wall Street traders struggle to define ETH's unique value, unlike BTC, which is seen as "digital gold."
Additionally, a shift from ETH to Solana (SOL) is noted, with memecoin issuance moving to the SOL blockchain. The report warns of potential further declines due to various market factors.