Ether (ETH) prices were dwindling between the red and the green territory on Tuesday despite all the bullish sentiment due to the launch of Ethereum ETFs. The fall in the prices of the second-biggest cryptocurrency occurred when activity on the Bitcoin network revealed that about 5,000 bitcoins had been removed from the exchange by Mt. Gox. At press time, the token was trading at $3,444.45, down over 1% compared to the same time last day.
Ethereum ETFs see $1 bln in inflows
After entering the market today, Ethereum exchange-traded funds (ETFs) saw a meteoric rise, with over $1 billion pouring into the eagerly expected offerings. Nevertheless, despite the volume, the price of the second-biggest digital asset by market capitalization has not changed.
On the first day of the spot ETH ETF’s launch, Grayscale ETH ETFs saw an outflow of $484 million, while Grayscale ETH Mini Trust saw an inflow of $15.1 million. On the other hand, Bitwise ETH ETF saw an inflow of $204 million, Franklin EZET saw an inflow of $13.2 million, and 21 Shares CETH saw an inflow of $7.5 million, according to Bloomberg analyst James Seyffart.
The decision to give a green signal to Ether ETFs follows the approval of Bitcoin (BTC) exchange-traded funds (ETFs) by the Securities and Exchange Commission in January, which concluded a multi-year process for the certification of ether ETFs.
Investing in Ether through an ETF wrapper could make it more palatable to conventional investors, as Ether can be purchased and traded through standard brokerage accounts.
Since their inception in January, Bitcoin ETFs have attracted tens of billions of dollars in investment. The approval of Ethereum ETFs will also likely boost investor confidence and increase public awareness of cryptocurrency trading.
With the approval, investors now have the opportunity to invest in additional, unrestricted cryptocurrencies in addition to Bitcoin. The decision also introduces additional rules to the cryptocurrency markets.
Why did ETH fall?
Activity on the Bitcoin network reveals that Mt. Gox has removed about 5,000 Bitcoins from the exchange, most likely as part of the creditor payback procedure that started this month.
On Tuesday, Reddit members who use Kraken verified that they have received their money back. The exchange, which declared bankruptcy a decade ago following a significant hack, has until October to repay over 140,000 bitcoins to those harmed in the incident.
Given the long-term optimism surrounding the performance of ether ETFs and the outcome of the US presidential election, the market is anticipated to withstand the unfavorable impact.
