Since July 23, when US regulators approved these investment products, the cryptocurrency has already lost 30% of its value.
Ethereum (ETH) is consolidating this Friday a downward trend in which it has been installed for several weeks. The second-largest crypto on the market has not recovered since its spot ETFs came online.
Thus, since July 23, the date on which US regulators gave the go-ahead to these investment products, ETH has lost around 30% of its value. The cryptocurrency fell from $3,400 and has already lost $1,000.
“While market liquidity for ETH pairs on centralized exchanges remains higher than it was at the start of the year, liquidity has fallen by almost 45% since its peak in June”he explained Jacob Josephresearch analyst at CCData, highlights that the liquidity of this token has fallen significantly.
According to this expert, This circumstance is probably the result of the combination of poor market conditions and the seasonal effects of summer, which are usually accompanied by lower commercial activity.
ETH spot ETFs have witnessed a cumulative outflow of over $500 million since their approval. It should be noted that, although most funds recorded positive net inflows, Grayscale’s ETHE fund was the biggest drag on these investment products, as outflows from this investment vehicle exceeded $2.6 billion.
“Due to the lower demand for spot ETH ETFs compared to Bitcoin, there seems to be Growing interest among asset managers to introduce a combined ETF offering exposure to bitcoin and ETH“, explains JP Morgan.
Source: Ambito
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