Ether ETFs See $401M Outflows in March, Erasing 2024 Gains

In March, U.S. exchange-traded funds (ETFs) linked to ether (ETH) experienced significant net outflows, totaling $401 million. This outflow erased the gains accumulated in the first two months of the year, highlighting a shift in investor sentiment towards the cryptocurrency. The redemptions accounted for nearly 6% of the total $6.77 billion in assets held by spot ether ETFs. Notably, only one day in March, March 4, saw positive inflows, with $14.58 million added. In contrast, January and February saw inflows of $101 million and $60 million, respectively.

Spot bitcoin ETFs also faced withdrawals, with $893 million in net outflows this month. However, the scale relative to assets under management was far less severe, roughly 0.9% of $94.35 billion. Bitcoin funds remain net positive for the year after strong inflows of $5.25 billion in January. This contrast mirrors recent market performance. Since March 1, ether has dropped roughly 8.5%, while bitcoin has gained more than 3%. Year-to-date, ether has plunged over 37% to around $2,080. Bitcoin, while also down, has fared better with a 7.5% decline to about $87,300. The broader market, as indicated by the CoinDesk 20 Index, fell 21% in the same period.

Despite the downturn, ether ETFs still hold a net inflow of $2.42 billion since their launch. However, this is dwarfed by the $36.05 billion pulled in by the bitcoin counterparts, highlighting the gap in investor appetite between the two assets. The significant outflows from ether ETFs in March suggest a cautious approach from investors, possibly due to the recent price drop and broader market volatility. The performance of bitcoin ETFs, which have seen less severe outflows, indicates a relatively stronger investor confidence in bitcoin compared to ether.