Cryptocurrency Price Movements Today: Ether Edges Lower on ETF Launches

Nine spot ether exchange-traded costs (ETFs) began trading connected nan banal exchanges Tuesday, but each nan optimism up of their support didn't construe into gains for nan crypto markets.

Ether (ETH), nan autochthonal cryptocurrency of nan ethereum blockchain, traded down little than 1% astir nan $3,400 level arsenic of 1:30 p.m. ET, while bitcoin (BTC) slipped much than 2% to astir $66,000.

Ether ETFs' Debut Not As Flashy As Bitcoin ETFs'

Spot ether ETFs began trading pinch conscionable complete $10 cardinal worthy of assets nether guidance (AUM), according to Bloomberg Intelligence expert James Seyffart, pinch astir of that money successful nan existing Grayscale Ethereum Trust (ETHE) that was converted into an ETF today.

"Long word Grayscale will simultaneously person nan highest interest and lowest interest connected nan market. The plus manager’s determination to support its ETHE interest astatine 2.5% could lead to outflows from nan fund," said Kaiko Research successful a statement Monday.

Outflows from ETHE, should they occur, would beryllium similar to nan ones faced by Grayscale's Bitcoin Trust (GBTC) aft spot bitcoin ETFs began trading successful January this year, astir apt connected relationship of nan precocious fees for nan 2 original funds. Grayscale's existing money charges 2.5% fees, while a caller "mini" ether ETF will complaint 0.15% and fees for different ETFs are pegged astatine 0.25% aliases lower.

Those outflows could resistance connected ether's value and marketplace sentiment.

"There could beryllium a pushback a small while aft nan motorboat of Ethereum spot ETFs, that is outflows from nan Grayscale Ether Trust whitethorn dampen marketplace sentiment successful nan short while," Hashkey Capital Liquid Fund Partner Jupiter Zheng told The Block.

But Grayscale remains optimistic.

"Relative to nan splashy debut of spot Bitcoin ETPs successful January, nan motorboat of Ethereum ETPs has been comparatively debased key," said Grayscale Head of Research Zach Pandl, adding that investors whitethorn beryllium "under-appreciating" nan ether ETFs that "are coming to nan US marketplace successful tandem pinch a displacement successful US authorities astir crypto and arsenic awesome financial institutions clasp tokenization."

Strong Bitcoin ETF Inflows Continue

On nan bitcoin broadside of things, location is intelligibly nary deficiency of request for nan spot ETFs, arsenic BlackRock's iShares Bitcoin Trust (IBIT) enjoyed its sixth-largest time of inflows successful its short history connected Monday astatine $526.7 million, according to information from Farside Investors. Daily inflows for nan wide spot bitcoin ETF marketplace were besides astatine their highest level since June 5.

Notably, plus head Franklin Templeton, which has issued some bitcoin and ether ETFs, has appeared to hedge its bets erstwhile it comes to Ethereum by investing successful Bitlayer, which is simply a measurement of implementing Ethereum's exertion connected a second-layer Bitcoin network, according to CoinDesk.