The spot Ethereum ETFs launched in July were met with great anticipation. However, in recent weeks, interest in Ethereum ETFs has been observed to be almost negligible or negative.
Ethereum ETFs Failed to Meet Expectations
The launch of spot Bitcoin 
98,267 ETFs in January provided a significant liquidity boost to the market. However, since the launch of Ethereum ETFs on July 23, Ethereum order book liquidity has decreased. According to data tracked by London-based CCData, all spot Ethereum ETFs in the US have experienced a total net outflow of $500 million since their launch.
The data shows that after the ETF launch, the average 5% market depth for ETH pairs on US-based centralized exchanges dropped by 20% to approximately $14 million. Similarly, market depth on offshore centralized platforms also fell by 19% to around $10 million. This decline indicates that it has become easier to change the spot Ether price by 5%, potentially leading to liquidity drops and greater volatility during large transactions.
“While market liquidity for ETH pairs on centralized exchanges is still higher compared to the beginning of the year, it has dropped by nearly 45% since its peak in June. This could be due to weak market conditions and seasonal effects, typically resulting in lower trading activity during the summer months.” – Jacob Joseph, CCData research analyst
ETH Price Faces Selling Pressure
Due to the weak support of Ether ETFs, the price of Ethereum (ETH) 
3,439 fell below the $2,400 level earlier today, facing selling pressure.
As of Friday, 125,000 ETH options will expire with a put-call ratio of 0.63; the maximum pain point is set at $2,500 with a nominal value of $290 million.
The overall weakness in the crypto market this week is clearly visible in the options data. The alignment of the maximum pain point with recent price drops indicates a delay in adjustments.
Low depth for the asset class generally indicates low liquidity and higher slippage, while high depth indicates strong liquidity and lower slippage.
The deterioration of market conditions has also reduced investor interest, preventing Ethereum ETFs from creating the expected impact.
The drop in liquidity following the launch of Ethereum ETFs has further highlighted the current weaknesses in the crypto market. The data shows a significant decline in market depth and resulting increased volatility in price movements. This lack of investor interest could create further selling pressure on Ethereum’s price. Notably, the net outflows and reduced market depth since the launch of the ETFs indicate that investors are more cautious about current market conditions. This situation may require additional measures to bring Ethereum’s price to a more stable level.
