LONDON, July 25 (Reuters) - Cryptocurrency ether dropped

as much as 7% on Thursday as it got caught up in the broad

market sell-off and failed to get a lift from this week's launch

of the first U.S. exchange traded funds tracking the currency.

The world's second largest cryptocurrency was last down 6%

at $3,170 in what would be its biggest daily percentage fall in

three months, leaving it broadly in the middle of its recent

trading range.

Bitcoin was 3% lower at $63,930.

The first U.S. ETFs tied to the price of ether began trading

on Tuesday, but have failed to generate the bounce in the price

that spot bitcoin ETFs created in bitcoin earlier in the year.

Instead, broader macro trends have taken hold. Shares around

the world have tumbled in recent weeks, particularly tech

stocks, and other 'risk assets' which often move in line with

crypto currencies.

The Nasdaq on Wednesday, lost almost 4% - the worst

one-day fall since 2022 - as lacklustre Alphabet and

Tesla earnings undermined investor confidence in the

already lofty valuations of the "Magnificent Seven" stocks.

Shares in crypto-related stocks such as miners fell in

Thursday's premarket, with exchange Coinbase down 2.3%,

Riot Platforms ( RIOT ) and Marathon Digital ( MARA ) down

3.4-4%.

European shares dropped 1.4% in early trading

Thursday.