The Ethereum team pours R$14 million into the market after ETFs fail

The Ethereum Foundation, responsible for developing the second largest cryptocurrency on the market, dumped its coins on the market again this Monday (9).

Although the team sold R$150 million worth of ETH in May this year, the new sale of R$14 million is much smaller but could be much more worrying for investors.

This is because the launch of Ethereum ETFs in the US last week was a bust, hitting 0.19% of the volume of Bitcoin ETFs, both futures. For now, the two cryptocurrencies are awaiting the approval of spot ETFs in the US.

Ethereum futures ETFs fail to gain traction in the US

In October 2021, about two years ago, Bitcoin futures ETFs arrived on US exchanges. On launch day, BITO, ProShares’ ETF, reached $1 billion in volume, joining the list of the biggest debuts.

Highlighted: the volume of the ProShares Bitcoin Strategy ETF (BITO), with a volume of US$1 billion.  Source: Morningstar/Reproduction.
Highlighted: the volume of the ProShares Bitcoin Strategy ETF (BITO), with a volume of US$1 billion. Source: Morningstar/Reproduction.

Ethereum, the second largest cryptocurrency on the market, also acquired its futures ETFs last week. However, no fund has managed to attract public attention and has not even reached the $1 million mark in volume.

“VanEck’s EFUT launched earlier than its competitors, allowing it to build some volume, but volumes declined rapidly”, commented Vetle Lunde, senior analyst at K33 Research. “49% of EFUT’s daily volume occurred during the first minute of trading.”

“The launch volume is extremely shallow compared to the launch volumes of BITO ($1.01 billion) and BITI ($7.21 million).”

Ethereum futures ETFs on their first day on the US stock exchange.  Source: K33 Research/Reproduction.
Ethereum futures ETFs on their first day on the US stock exchange. Source: K33 Research/Reproduction.

Ethereum Foundation dumps coins on the market

Thanks to the small noise about the arrival of Ethereum ETFs, ETH managed to rise 12% in value in the last week of September, ending the month on a high. However, the price fell again shortly after the market became aware of the lack of interest from investors in the stock markets.

Moreover, this Monday (9), the Ethereum Foundation sold 1,700 ETH (about R$14 million), ending all hopes for the bulls.

“The Ethereum Foundation just sold 1,700 ETH ($2.76 million) for USDC.”

Although small, compared to another sale of R$150 million, the move comes at an inopportune time, when the market is already vulnerable. This morning, ETH fell more than 5% to reach $1,550 before a brief reaction.

The Foundation is not the only one following this line. Vitalik Buterin, founder of Ethereum, also moved millions to an exchange last month. A whale moved 20,000 ETH (R$161 million) to brokers in the same week.

Finally, other metrics also scare investors. While low transfer speeds are ideal for exploiting the network’s full potential, they also reveal the recent lack of interest in the project.

Ethereum network fees are falling.  Source: UltraSoundMoney.
Ethereum network fees are falling. Source: UltraSoundMoney.

Source: Live Coins

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