Spot Ethereum ETFs See Largest Outflow Week Since Inception, Even as ETH Rebounds Above $4,000

Spot Ethereum ETFs faced $795M in outflows last week, marking a record, even as ETH surged back above $4,000.

Spot Ethereum ETFs saw their largest outflows since launching, with nearly $800 million withdrawn last week. Despite this, Ethereum price slightly recovered and surged back above $4,000. The combination of these factors highlights ongoing volatility in the crypto market, where investor sentiment can shift quickly.

Ethereum ETF Outflows Surge as ETH Price Dips Below $4,000

During the week ending September 26, spot Ethereum ETFs experienced $795.6 million in outflows, marking their worst week on record. The outflows were tied to Ethereum price dip below $4,000, which caused panic among some investors. This marks the second-largest outflow week, narrowly surpassing the $787.7 million seen in early September.

Among the affected funds, BlackRock’s Ethereum ETF, ETHA, saw over $200 million in withdrawals. However, the fund still holds over $15.2 billion in assets under management (AUM). On the other hand, Fidelity’s Ethereum Fund (FETH) experienced larger withdrawals, with over $362 million leaving the fund during the same period.

ETH Price Drops and Recovers, Leading to Increased ETF Withdrawals

Ethereum price dropped below the $4,000 mark on Thursday and Friday, leading to an increase in ETF outflows. This price drop was due to a mix of technical breakdowns, broader macroeconomic concerns, and cascading liquidations in the market.

Despite the sharp decline, ETH regained its footing by Saturday, climbing back above $4,000. At the time of writing, Ethereum is trading around $4,020, showing a slight recovery. The quick rebound suggests that the $4,000 level remains a crucial support point for the cryptocurrency.

Bitcoin ETFs Also See Significant Outflows Amid Broader Market Weakness

In addition to Ethereum, Bitcoin ETFs saw a high level of withdrawals, with a total of $902.5 million in outflows for the week. BlackRock’s Bitcoin ETF, IBIT, recorded a smaller outflow of $37.3 million on Friday. Meanwhile, Fidelity’s Bitcoin ETF, FBTC, saw a larger outflow of $300.4 million on the same day.

The Bitcoin ETFs, like their Ethereum counterparts, have faced challenges due to the market’s volatility. Despite these outflows, BlackRock’s IBIT fund continues to dominate the market, holding a significant share among Bitcoin-focused ETFs. The ongoing withdrawals from both Bitcoin and Ethereum ETFs signal cautious sentiment from investors, especially amid current price fluctuations.

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