2024 has truly been a rollercoaster for cryptocurrencies worldwide. Both major and smaller cryptocurrencies have had their prices turn topsy-turvy in the different months of this year. Bitcoin and Ethereum have constantly been in the news for both price gains and losses, and it seems neither token can enjoy a long spell of price stability.
Related: What Is Behind Ethereum Layer-1 Network Revenue Collapse?
September has been one of the challenging months for the two largest cryptocurrencies, as they have both seen a significant amount of value shaved off their prices. Ethereum has hit its lowest price in the entire year after plunging 8% in just 24 hours. It dipped as low as $2,193, a level last seen in 2023.
The 24-hour drop is part of Ethereum’s plunge over the past week. The second-largest coin has seen a 13% fall over the past week, making it one of the week’s biggest losers.
Bitcoin also experienced its fair share of price drops. Its price has been struggling as many investors sell off their Bitcoin ETFs. The biggest cryptocurrency saw a significant drop of 5% in the past 24 hours. Bitcoin’s price crashed to $52,690, although it has recovered at the time of this writing.
But it’s not just the two top coins that have been struggling; it has also not been a good few days for many cryptocurrencies. Data has shown that the entire crypto sphere's market cap has seen a 6% decline. The market cap fell from its $2 trillion mark to $1.96 trillion for the first time since February 2024.
In addition, crypto liquidations have also risen in the past 24 hours. Data from CoinGlass showed that over $272 million had been liquidated in the past day, with $221 million being long positions.
In other news, the giant investment firm VanEck has announced that it will be closing and liquidating its Ethereum futures ETF (EFUT). The shocking announcement is, however, not without cause. The Ethereum ETF market has been having a hard time recently.
Now that our spot ethereum ETP has been approved, we are closing our ETF that invested in ethereum futures. https://t.co/xYfK6StoWS
— VanEck (@vaneck_us) September 6, 2024
Data from SoSO Value showed that the ETH ETF market has seen a cumulative net outflow of $562.3 million. Since September 15, there has been just one day of positive flows and one more day of no flows, while the rest were days of negative outflows.
Following these mostly negative developments, VanEck announced that the VanEck Ethereum Strategy ETF (ETHV) will be discontinued from trading on September 16.
VanEck has plans to settle its investors and shareholders who have yet to sell their shares by the time of liquidation. The company has said that shareholders in this category will receive a cash distribution equal to the net asset value of their holdings.
The exit from the Ethereum ETF game may help VanEck cut some losses, but it does not look good for Ethereum ETFs. These tokens have only just entered the market and have already started leaving. With news like this, the future of Ethereum ETFs doesn’t look too good.
Richard Adrian
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