Ethereum price is down 7.37% in the past 24 hours.
Grayscale transferred $486M ETH, adding to market volatility.
In a major downturn for the cryptocurrency market, the total global market cap decreased by 3.83%, settling at $2.31 trillion, with trading volumes falling by 8%. Major cryptocurrencies, Bitcoin dipped below $64,000, while Ethereum saw a sharp decline of 7.37% in the past 24 hours, and its trading volume dropped by 12%.
This bearish trend is largely attributed to the launch of Ethereum ETFs. Just seven months after the first spot Bitcoin ETFs hit the market, the Securities and Exchange Commission (SEC) approved nine Ethereum ETFs for trading. However, the market reacted unfavorably, with all nine ETFs posting significant losses. Despite this, the total volume for the new ETFs surpassed $1.08 billion on the first day, indicating substantial interest.
Adding to the market’s volatility, Grayscale transferred 140,044 ETH ($485.6 million) to Coinbase Prime and received 4,382 ETH ($14.8 million) from the platform, resulting in a net outflow of 135,662 ETH ($470.8 million). Grayscale currently holds 2,489,075 ETH ($7.9 billion), according to their website. Notably, Grayscale issues two of the nine spot ETFs, sparking debates within the crypto community about the impact of such large movements on Ethereum’s price and overall market sentiment.
In the past 24 hours, #Grayscale transferred 140,044 $ETH($485.6M) to #CoinbasePrime, and received 4,382 $ETH($14.8M) from #CoinbasePrime, with a net outflow of 135,662 $ETH($470.8M)!According to #Grayscale's website, #Grayscale currently holds 2,489,075 $ETH($7.9B).… pic.twitter.com/2LYaRinh4h
— Lookonchain (@lookonchain) July 25, 2024
What Does This Imply?
On the first day of trading, Grayscale transferred 292,263 ETH tokens to Coinbase Prime Exchange. The Coinbase Hot Wallet, which received the $1.01 billion worth of tokens, subsequently distributed the funds to different wallets of the Grayscale Mini Trust.
Moreover, these large-scale transfers and the disappointing performance of the newly launched ETFs have raised investor concerns. Analysts closely monitor the situation to gauge the long-term implications for Ethereum and the broader cryptocurrency market.
The initial reaction suggests a cautious approach from investors, highlighting the ongoing volatility and uncertainty in the crypto space. The coming weeks will be crucial in determining the success. And acceptance of these ETFs among investors and their impact on Ethereum’s price stability.
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