BLK - Ethereum's Price Falls 7% After Spot ETF Launch

2024-07-25 09:49:46 ET

The price of %Ethereum CRYPTO: ) is down 7% and on pace for its worst decline in three months just days after a new crop of spot Ether exchange-traded funds (ETFs) began trading in the U.S.

Ethereum’s price is currently at $3,150 U.S., down from more than $3,500 U.S. at the start of the week.

The selloff is surprising coming as it does after spot Ethereum ETFs launched in the U.S. market, attracting more than $100 million U.S. of capital in their first day of trading on July 24.

Ethereum is now on track for its biggest daily percentage decrease in three months.

Analysts say Ethereum has got caught up in the broad market selloff and rotation out of technology stocks.

Eight Ethereum ETFs have listed for trading to date.

The already existing Grayscale Ethereum Trust that has assets of nearly $9 billion U.S. is in the process of converting from a closed-end fund to an ETF.

Among the asset managers that have launched spot Ethereum ETFs are %BlackRock (NYSE: ), Bitwise, Fidelity, %Invesco (NYSE: ) and VanEck.

The Ethereum ETFs have come to market six months after spot %Bitcoin (CRYPTO: ) ETFs. The Bitcoin funds have seen net inflows of about $20 billion U.S. since they launched in January.

Ethereum is the second largest %Cryptocurrency by market capitalization after Bitcoin. Despite the current selloff, Ethereum’s price is up 34% this year.