The price of crypto assets retreated this week following an explosive week before when the price of BTC rose more than 15% due to pro-crypto US Presidential candidate Donald Trump surviving an assassination attempt. With a large move within a span of only a few days, prices quickly retreated as risk-off selling in the stock markets spilled over to crypto assets, caused by a rising yen and the uncertainty looming in America after US President Biden was rumored to be critically ill.
On top of the macroeconomic and political headwinds, the price performance of the ETH ETF that began trading on Tuesday also failed to inspire bulls. The price of ETH posted a huge decline of more than 10% on the first two days of trading after Grayscale customers, who had held the ETHE product for years, started to sell due to the fee discrepancy between the Grayscale ETHE product versus its competitor’s offering. This phenomenon is a repeat of the BTC ETF saga in January, where customers of Grayscale exiting caused the price of BTC to plunge from a high of $50,000 to a low of $36,000.
The outflow from Grayscale ETHE in the first two days of trading was as much as $800 million, with around $8 billion worth still being held in the trust. For the sake of perspective, in the first three months of the BTC ETF trading, the amount of outflow from the Grayscale BTC ETF was around $15 billion. Should the ETH ETF experience a similar outflow, another possible $14 billion worth of sales could be in the works.
In addition to the ETH ETF outflow problem, BTC experienced a similar exodus issue from Mt Gox, causing its price to retreat by around 6%.
After around 11 years, the Mt Gox Trustee finally started distributing larger tranches of its payout of
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