Ethereum

when

Spot

Yesterday, spot Ethereum ETFs saw a net outflow of $5.6976 million, making it the seventh day in a row of investors pulling their money out. The total value of these ETFs is currently sitting at $7.652 billion. But that number might look prettier than it is.&nbsp; 
Grayscale’s Ethereum ETF (ETHE) was hit particularly hard, <a href="https://t.co/Co2eWipqtd" rel="nofollow" target="_blank">losing</a> $9.7656 million, while VanEck’s ETF (ETHV) managed to gain a modest inflow of $2.0063 million. 
You know the deal: buy the rumor, sell the news. That’s exactly what happened with these ETFs. Investors piled in before the launch, hoping for a big payday when the ETFs went live. But as soon as they did, everyone wanted out.&nbsp; 
Ethereum’s price was riding high around $3,500 back in July, but after the ETFs hit the market, it nosedived. People weren’t here to play the long game—they wanted quick cash. And when the price started dropping, it only pushed more people to sell, setting off a chain reaction.&nbsp; 
On the first day of ETF trading, ETHE saw outflows of $484 million. This massive dumping of shares overshadowed any buying interest that the new ETFs might have sparked.&nbsp; 
Analysts pointed out that such a huge outflow can create a vicious cycle, where falling prices lead to more selling, which leads to even lower prices. It’s a feedback loop that no one wants to be caught in, especially in a market as volatile as crypto. 
The market also saw a wave of liquidations. Over $94 million in long positions on Ethereum futures were wiped out within 24 hours of the launch. Traders who had bet on Ethereum’s price going up got absolutely wrecked.&nbsp; 
The sudden liquidation of these positions put even more pressure on the price, making things worse. There’s also the issue of Ethereum’s fundamentals. Some analysts are saying that Ether hasn’t shown much promise lately.&nbsp; 
Concerns are floating around about whether Ethereum might be classified as a security, which is keeping investors jittery. 
If Ethereum gets hit with that label, it could face a whole new set of regulatory challenges. Some of the issuers have already agreed to terminate their ETFs if Ether ever gets classified as a security.

Spot Ethereum ETFs continue their outflow streak with $5.7M

Cryptopolitan_News

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