The second day of trading for the Ethereum spot ETF looked very different from the first day when more than $133 million was taken out of the market.
The price of the crypto market responded with a big drop in the price of ETH which sent it down as much as 10% on the day, confirming earlier reports that the approval of the ETF could be the moment to sell holdings.
Ethereum spot ETFs on the first day featured strong trading as more than $106 million poured into the market as a whole. BlackRock's ETHA and Bitwise's ETHW lead the way with $266.5 million and $204 million respectively. They even managed to reduce the impact of the outflow from ETHE Grayscale, when $484 million was taken out of the exchanged funds.
However, the landscape on the second day was completely different. Grayscale products experienced outflows of $326.9 million, while demand for other ETFs was not visible, and total withdrawals for the day jumped to $133.3 million. Only FETH from Fidelity had an impressive day with inflows of $74.5 million.
As expected, the price of ETH suffered from the disappointing performance of this newly launched product. The asset fell from near the $3,500 price level to a multi-day low of $3,147 in today's trade, marking a 10% decline.
Over $100 million in ETH long positions have been wiped out in the past day, which is a third of the total ($292 million so far).