Ethereum News Today: Ethereum ETFs Lose $210M as Altcoins Attract $200M in Institutional Inflows

The US Ethereum spot ETFs faced a net outflow of $210.43 million in the latest data, marking the fifth consecutive day of redemptions, according to a Coinotag report. This trend mirrors broader market dynamics as institutional investors reallocate capital amid divergent performance across crypto assets. Bitcoin ETFs also saw outflows totaling $543.59 million over three days, with BlackRock's IBIT alone accounting for $297.93 million of the decline. Meanwhile, Solana's BSOL ETF attracted $197 million in inflows, highlighting a growing appetite for high-performance altcoins.

The outflows from Ethereum and Bitcoin ETFs reflect a shift in institutional sentiment, with major players like BlackRock offloading positions. BlackRock's Ethereum ETF, ETHA, led outflows with $81.7 million in a single day, while its Bitcoin holdings dropped by 31,754 ETH, valued at $121.94 million. Analysts attribute this to a combination of regulatory uncertainty, competition from layer-1 blockchains, and equity markets outperforming crypto assets. Lark Davis, a market analyst, noted that "Solana's momentum underscores the appeal of scalable networks in a maturing market," adding that the altcoin's ecosystem growth is driving institutional interest.

Ethereum's price has dipped below $3,500, trading in bearish territory as ETF redemptions exacerbate downward pressure, according to an FXStreet report. Cumulative outflows for Ethereum ETFs reached $499.71 million as of Nov. 3, with nine funds collectively shedding $135.76 million in a single day. Retail demand has also waned, with Ethereum futures open interest (OI) declining to $44.72 billion from a peak of $63 billion. This weak demand is compounded by a suppressed OI-weighted funding rate of 0.0038%, signaling increased short positioning.

In contrast, newly launched ETFs for Solana, Hedera, and Litecoin have drawn fresh capital. Solana's BSOL ETF, which debuted last week, has seen $199.21 million in net inflows over four days, according to a Bitcoinist report. Bitwise's XRP ETF filing, pending SEC approval, could further diversify institutional exposure to altcoins. The Flare Network also gained traction after Teucrium Trading LLC filed for a Flare-based ETF, capitalizing on the network's 38% growth in total value locked (TVL) over a month, according to a Coinrise report.

The divergence in ETF flows underscores a maturing crypto market where investors are balancing risk across assets. While Bitcoin and Ethereum face headwinds from macroeconomic conditions and regulatory scrutiny, altcoins with scalable infrastructure and institutional-friendly ecosystems are gaining traction. Market participants are now watching for catalysts such as Federal Reserve policy shifts or new ETF approvals to reignite bullish momentum, according to a Cointelegraph article.