Ether ETF Approved
Nine spot ETFs on Ether have been operating since Tuesday, July 23. On the first day, there was excitement around the new instruments, which resulted in an inflow of $106.78 million on average per fund. In total, more than $1 billion. Then the enthusiasm of investors died down, and in three days, $448.13 million was withdrawn from spot Ether ETFs. Cryptocurrencies reacted weakly. The exception was Ether, which fell by more than 8%.
Riot Blockchain (NASDAQ: RIOT)
Colorado-based miner Riot Blockchain tops the list. Its market cap is $3.31 billion. Since the launch of spot ETFs on Ethereum, the stock has fallen by 3.36%. On July 24, it became known that Riot acquired another miner, Block Mining, based in Kentucky. It would seem that the news is quite positive: Riot will be able to increase its hashrate by 2025 to 56.6 EH/s. However, investors are clearly cautious, waiting for the second-quarter report, the publication of which is scheduled for July 31.
Source: tradingview.com
CleanSpark (NASDAQ:CLSK)
Another mining company, Clean Spark, is in ninth place. Its market capitalization is $3.9 billion. Since July 23, CLSK shares have fallen by 1.89%. The decline, however, is more likely due to the sell-off of securities by CleanSpark CTO Monnig Taylor. At the same time, the company released a good report for the second quarter of 2024: revenue was a record and reached $111.8 million, and net profit was $126.7 million against a loss of $18.5 million a year earlier for the same period.
Source: tradingview.com
Galaxy Digital Holdings (TSX:GLXY)
Eighth place is occupied by Galaxy Digital Holdings with a capitalization of $3.95 billion. The company’s activities are multi-directional: mining, investment services, development of Web3 projects. Since the approval of spot ETFs on Ether, GLXY shares have fallen by 4.22%. However, this is more likely due to purely technical aspects. In mid-July, Galaxy Digital Holdings’ shares reached their maximum in two and a half years, so a correction was inevitable.
Source: tradingview.com
Marathon Digital Holdings (NASDAQ: MARA)
In seventh place is a mining company that is also involved in blockchain developments — Marathon Digital Holdings with a market capitalization of $6.09 billion. The shares practically did not react to the launch of spot ETFs, losing 0.4%. But the dynamics over the past ten days are quite depressing — a decrease of 21.17%. It is expected that the income report, which the company will present on August 1, will not be very positive. For example, Zacks analysts expect a decrease in earnings per share to $0.12, which is equivalent to a drop of 29.41% compared to the previous year.
Source: tradingview.com
MicroStrategy (NASDAQ:MSTR)
Sixth place is occupied by one of the largest Bitcoin holders, MicroStrategy, a company engaged in business analytics, mobile software and cloud storage. Since the launch of spot ETFs on Ether, its shares have grown by 1.8%. The main driver for MicroStrategy should be the 10-for-1 split planned for August 1. Thus, the number of shares will become ten times larger (and ten times cheaper), which will make them more accessible to investors.
Source: tradingview.com
Block (NYSE: SQ)
In fifth place is Block, a company engaged in payment services, including cryptocurrency ones. Its capitalization is $37.13 billion. Since the appearance of spot ETFs on Ether, the company’s shares have lost more than 10%. However, the drivers of the decline were rather the plans of CEO Jack Dorsey for restructuring and the expectation of the financial report for the second quarter, the publication of which is scheduled for August 1.
Source: tradingview.com
Grayscale Bitcoin Trust (NYSE: GBTC)
The fourth place goes to the spot bitcoin ETF — Grayscale Bitcoin Trust. Its market capitalization = $41.77 billion. Since the launch of spot Ethereum ETFs on July 23, GBTC shares have risen in price by 3.61%. Interestingly, according to the analytical platform SoSoValue, the outflow of funds from the fund over the past three days amounted to $93.12 million. And in general, since the launch of trading in January 2024, GBTC has seen an inflow only twelve days, three of which were in July.
Source: tradingview.com
Coinbase (NASDAQ: COIN)
Third place goes to the largest American cryptocurrency exchange Coinbase. Its market capitalization = $59.65 billion. Since July 23, when the Ethereum ETF was launched, COIN shares have fallen by 5.71%. The financial report for the second quarter will also be key for the company. As Yahoo Finance analysts expect, it should be quite positive. Experts believe that year-on-year growth will be 98%. But regarding the indicators relative to the first quarter, Yahoo Finance is less positive – they expect a decrease due to the correction of cryptocurrencies.
Source: tradingview.com
PayPal (NASDAQ: PYPL)
Another tech company, primarily involved in payments, PayPal, came in second place with a market cap of $60.97 billion. In the cryptocurrency space, it is known not only for its transaction services, but also for its own stablecoin PYUSD. After the launch of the ETH-ETF, the company’s shares fell in price by 2.38%. Here, too, as in many other organizations, the financial report for the second quarter of 2024 is expected, the publication of which is scheduled for July 30. Apparently, in anticipation of it, investors prefer caution to rash purchases.
Source: tradingview.com
Tesla (NASDAQ:TSLA)
Tesla ranks first with a market cap of $702.18 billion. Although it is not involved in cryptocurrency mining or blockchain technology development, it is one of the largest Bitcoin holders. After the start of spot ETF trading on Ether, the shares lost 10.79% in price. At the same time, they fell even lower – by more than 12%. However, such a reaction of Tesla shares should not be associated with the launch of exchange-traded funds for the second-largest cryptocurrency by capitalization, but with its own report, which was released on June 23. And although it recorded a 2% increase in revenue, the profit, which fell by 45% over the year, prompted investors to sell off.
Source: tradingview.com
Conclusion
Since the launch of spot Ethereum ETFs in the US, most major crypto companies have seen their shares fall in price. However, it is unlikely that the fall in securities is connected to the listing of ETF units. The companies are currently in the reporting season – they are publishing financial results for the second quarter of 2024, so investors prefer to refrain from rash decisions.
This material and the information in it are not individual or any other investment recommendation. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
