The launch of spot Ethereum ETFs initially brought optimism to the market but quickly led to a sell-off and a decline in the price of $ETH. This pattern mirrored previous crypto ETF launches, including spot Bitcoin ETFs. Markus Thielen of 10x Research noted that traders had expected significant inflows but overlooked potential outflows from Grayscale and the typical "sell the news" reactions. The launch coincided with BTC distributions from Mt. Gox, exacerbating selling pressure. Grayscale's Ethereum Trust saw significant outflows, while Bitwise recorded inflows primarily from Pantera Capital, which quickly sold off its holdings. The 10x report highlighted a bearish outlook on ETH, noting it was overbought before the ETF launch and suggesting a potential shift of interest from Ethereum to Solana.
Source: Cointelegraph