Ether Spot ETFs See $358.1M Outflows Amid 7% Price Drop

Ether spot exchange-traded funds (ETFs) in the U.S. experienced a significant downturn, with $358.1 million in outflows over an 11-day period. This decline coincided with a nearly 7% drop in the price of ether, highlighting a period of investor caution and market volatility.

BlackRock’s iShares Ethereum Trust ETF (ETHA) was notably affected, recording $12.9 million in outflows on a single day and a cumulative loss of $137.6 million over the 11-day stretch. Fidelity’s FETH and Grayscale’s ETHE also contributed significantly to the total outflow, reflecting a broader trend of investor withdrawals from ether spot ETFs.

Despite the recent outflows, spot ether ETFs still hold approximately $7 billion worth of the cryptocurrency. Since their inception in July, these ETFs have seen a cumulative net inflow of $2.45 billion, indicating that while there has been a recent shift in investor sentiment, the overall trend remains positive.

The price of ether has been on a downward trajectory, falling from around $2,150 on March 8 to approximately $1,990 by Thursday. This represents a roughly 40% decrease in value year-to-date, underscoring the challenges faced by the cryptocurrency market.

In contrast, U.S. bitcoin ETFs have shown resilience, posting four consecutive days of inflows. This has brought their cumulative net total inflow to $35.8 billion since January last year, demonstrating a stark difference in investor confidence between ether and bitcoin.

Analysts suggest that the outflows from ether spot ETFs may be driven by a combination of factors, including market uncertainty, regulatory concerns, and the overall bearish sentiment in the cryptocurrency market. The recent price decline in ether has likely exacerbated these concerns, leading to increased investor caution and withdrawals from ETFs.

However, it is important to note that the long-term outlook for ether and its associated ETFs remains uncertain. While the recent outflows and price declines are concerning, the cumulative net inflow since July indicates that there is still significant investor interest in ether spot ETFs. The future performance of these ETFs will depend on a variety of factors, including market conditions, regulatory developments, and investor sentiment.