The post Ethereum ETF momentum collapses after record August appeared on BitcoinEthereumNews.com. Ethereum ETFs recorded a dramatic slowdown in September, with monthly inflows collapsing from $3.9 billion in August to just $285 million, according to Blockworks Research data.  The sharp drawdown marks one of the steepest reversals since ETH ETFs launched earlier this year. The month-over-month change reflects what Blockworks Research analysts call a “flows-driven market.” Last week was the most negative week in aggregate since the March selloff, with bitcoin ETFs posting $900 million in outflows and Ethereum ETFs losing $800 million. Both asset classes have seen ETF flows mirror underlying spot prices, reinforcing the thesis that secondary market activity in the funds is dictating near-term price action. Source: Blockworks Research Part of the most recent outflows may be the result of the monthly trends, according to James Butterfill, CoinShares Head of Research, who notes that options expirations at the end of the month beget outflows while early month inflows typically follow. “The evolving ETF landscape has supported the growth of a much more active options market,” Butterfill told Blockworks. For ether, the reversal was particularly acute. ETH saw a peak-to-trough price drawdown of nearly −20% in September, before rallying into month-end with a 4% surge on September 30 that left the token down just −3.5% for the month overall. While ETFs are expected to dampen volatility by anchoring institutional demand, September’s flows notwithstanding. “When [the ETFs] were launched at the beginning of 2024, Bitcoin’s 30-day average volatility was around 40%; today it has fallen to just 25%,” Butterfill said. A closer look at issuer-level flows shows the divergence within ETH funds. ETHA posted $315 million of net inflows, while smaller products like FETH (−$51.6M), ETHW (−$38.8M), and ETHE (−$28.7M) dragged the category lower.  Source: Blockworks Research Bitcoin ETFs, meanwhile, continued to draw heavier absolute flows and with more resilience relative… The post Ethereum ETF momentum collapses after record August appeared on BitcoinEthereumNews.com. Ethereum ETFs recorded a dramatic slowdown in September, with monthly inflows collapsing from $3.9 billion in August to just $285 million, according to Blockworks Research data.  The sharp drawdown marks one of the steepest reversals since ETH ETFs launched earlier this year. The month-over-month change reflects what Blockworks Research analysts call a “flows-driven market.” Last week was the most negative week in aggregate since the March selloff, with bitcoin ETFs posting $900 million in outflows and Ethereum ETFs losing $800 million. Both asset classes have seen ETF flows mirror underlying spot prices, reinforcing the thesis that secondary market activity in the funds is dictating near-term price action. Source: Blockworks Research Part of the most recent outflows may be the result of the monthly trends, according to James Butterfill, CoinShares Head of Research, who notes that options expirations at the end of the month beget outflows while early month inflows typically follow. “The evolving ETF landscape has supported the growth of a much more active options market,” Butterfill told Blockworks. For ether, the reversal was particularly acute. ETH saw a peak-to-trough price drawdown of nearly −20% in September, before rallying into month-end with a 4% surge on September 30 that left the token down just −3.5% for the month overall. While ETFs are expected to dampen volatility by anchoring institutional demand, September’s flows notwithstanding. “When [the ETFs] were launched at the beginning of 2024, Bitcoin’s 30-day average volatility was around 40%; today it has fallen to just 25%,” Butterfill said. A closer look at issuer-level flows shows the divergence within ETH funds. ETHA posted $315 million of net inflows, while smaller products like FETH (−$51.6M), ETHW (−$38.8M), and ETHE (−$28.7M) dragged the category lower.  Source: Blockworks Research Bitcoin ETFs, meanwhile, continued to draw heavier absolute flows and with more resilience relative…