BlackRock, Fidelity and Grayscale dump Ethereum ETFs amid extended losing streak

BlackRock, Fidelity, and Grayscale dumped ETH ETFs, with $422M in outflows on August 19, marking the third consecutive day of losses. Major issuers offloaded significant portions of their ETH holdings, reaching up to $160M. ETH has given up most of its recent rally gains and is now trading around $4,100. On-chain data shows that the broader trend remains positive, but short-term momentum has slowed.

On August 19, 2025, major ETF issuers BlackRock, Fidelity, and Grayscale collectively dumped Ethereum ETFs, resulting in a significant outflow of $422 million. This marked the third consecutive day of losses for Ethereum ETFs, with major issuers offloading significant portions of their Ethereum holdings, reaching up to $160 million. The sudden outflows have led to Ethereum giving up most of its recent rally gains, with the cryptocurrency now trading around $4,100. Despite the short-term setback, on-chain data indicates that the broader trend remains positive, but short-term momentum has slowed.

The outflows came after a period of strong inflows into Ethereum ETFs, with more than $3.7 billion added to their assets over an eight-day streak in August. However, the recent withdrawals have not yet overshadowed the overall positive market sentiment surrounding Ethereum ETFs. As of now, Ethereum ETFs hold approximately $27.7 billion in assets under management, accounting for 5.34% of Ethereum’s total market capitalization [1].

The significant outflow on August 19 was led by BlackRock's Ethereum ETF, ETHA, which saw the largest drop, losing approximately 20,000 ETH, valued at $86.9 million. Fidelity's Ethereum ETF, FETH, followed closely, with redemptions worth $78.4 million. Grayscale's Ethereum fund faced an outflow of $18.7 million, while other issuers such as Franklin Templeton, VanEck, and Bitwise also saw smaller withdrawals [1].

The immediate market impact was measurable: Ethereum’s spot price declined about 6.5% to $4,226 after the flows were recorded. Exchange and unstaking activity increased as liquidity and risk sentiment shifted briefly, based on ETF flow data and on-chain indicators monitored by market analytics providers [2].

Investors should view a single-day ETF outflow as a potential short-term liquidity event, not definitive directional conviction. Look for continued multi-day flow patterns, correlated on-chain metrics, and macro risk events before adjusting long-term positions [2].

The aggressive buying spree by BlackRock, which saw the firm invest over $1 billion worth of Bitcoin and Ethereum for its exchange-traded funds (ETFs) on August 14, highlights the strategic moves of major institutional players in the cryptocurrency market [3]. Despite the recent outflows, the overall trend of institutional adoption of Ethereum remains strong, with cumulative net inflows into Ethereum ETFs surpassing $12 billion.

References:
[1] https://coincentral.com/ethereum-etfs-experience-196-6m-outflow-led-by-blackrock-fidelity/
[2] https://en.coinotag.com/ethereum-etfs-could-see-continued-volatility-after-196-6m-outflow-led-by-blackrock-fidelity/
[3] https://cryptonews.com/news/blackrock-pours-over-1b-into-bitcoin-ethereum-etfs-during-dip-what-do-they-know/