Ether ETFs launch on day 1, while Mt. Gox continues to transfer bitcoin to creditors.

On Tuesday, the crypto market was led lower on the first trading day for ether ETFs, as Mt. Gox transferred more bitcoin to creditors and investors took profits following the cryptocurrency's best week since March.

The price of bitcoin was last lower by 3% at $65,891.50 according to Coin Metrics. It was down more than 1% at $3,445.10. Investors and analysts attribute the moves to profit taking after their 22.85% and 12.75% gains, respectively, last week.

Bitcoin network activity indicates that Mt. Gox has transferred approximately 5,000 bitcoins from the exchange, possibly as part of the repayment process for creditors initiated this month. The exchange, which suffered a catastrophic hack 10 years ago, has until October to return over 140,000 bitcoins to victims of the incident.

The market is expected to absorb the negative impact due to long-term optimism on the success of ether ETFs and the U.S. presidential election.

Devin Ryan, analyst at JMP Securities, stated that the adoption of the bitcoin ETF out of the gate is likely to be slow and modest compared to the adoption of bitcoin. He explained that this is due to the fact that the bitcoin ETF adoption is still in its early stages, and many of the largest pools of money for the ETF have not yet been activated.

According to Antoni Trenchev, co-founder of Nexo, ether could be volatile due to the launch of bitcoin ETFs in January, which caused bitcoin to surge to a record before plummeting 20% and then advancing to another new high.

According to Ben Kurland, CEO of crypto research platform DYOR, the ETF for Ethereum will require time for inflows to create a supply shock that would significantly impact the markets.

The uncertainty in the market is due to President Joe Biden's decision to drop out of the presidential race.

"Vice President Kamala Harris' stance on crypto and the likelihood of her taking back any ground in the polls are being closely watched by investors," he stated.

Trenchev echoed that sentiment.

The sudden arrival of Kamala Harris into the U.S. presidential election has caused uncertainty in the race, which was previously leaning towards Donald Trump and his pro-crypto stance, resulting in Bitcoin's drop from recent highs, according to him.