Ethereum News Today: Ethereum ETFs Bleed $197M as Stolen Funds Double and Unstaking Rises

Ethereum (ETH) stabilized above $4,000 on August 19, 2025, amid significant outflows from U.S. spot Ethereum exchange-traded funds (ETFs) and a notable trading activity involving the Radiant Capital exploit hacker. These developments suggest shifting investor sentiment and continued institutional activity within the Ethereum ecosystem.

Spot Ethereum ETFs recorded $196.6 million in outflows on Monday, marking the second-largest single-day outflow since their debut, according to SoSoValue. This figure followed a prior $59 million outflow on Friday, bringing the two-day total to $256 million. The outflows primarily affected the largest issuers, including BlackRock’s iShares Ethereum Trust ETF (ETHA), which saw redemptions of around 20,000 ETH, or $86.9 million, and Fidelity’s FETH, with $78.4 million in outflows. These figures contrast with the $3.7 billion inflow streak recorded over the previous eight trading days. As of August 18, ETH ETFs held 5.08% of Ethereum’s total supply, valued at $26.7 billion in on-chain assets.

The outflows coincide with a record-high Ethereum unstaking queue, currently at 910,000 ETH, or approximately $3.9 billion. This backlog reflects the growing interest among Ethereum validators to unstake their holdings, with a minimum wait time of 15 days and 14 hours for withdrawals. Analysts have expressed concerns about the potential for a prolonged period of unstaking, which could exert downward pressure on ETH prices and influence broader market sentiment.

In a separate but related development, the Radiant Capital exploit hacker, who initially stole $53 million in October 2024, has nearly doubled the value of the stolen funds through strategic Ethereum trading. According to on-chain analysis from EmberCN, the hacker sold 9,631 ETH at an average of $4,562 for 43.9 million DAI before repurchasing 2,109.5 ETH at a lower average price of $4,096. This activity has increased the hacker’s holdings to 14,436 ETH and 35.29 million DAI, with a combined value of $94.63 million as of August 19. The hacker’s ability to leverage Ethereum’s recent price movements highlights the ongoing challenges in tracking and recovering illicitly obtained digital assets.

Ethereum’s performance relative to Bitcoin has also been a focal point in recent weeks, with spot Ethereum ETFs gaining ground in terms of inflows. Data from Hildobby, a data analyst at Dragonfly, indicates that the percentage of Ethereum held in ETFs is approaching the 6.4% threshold held in Bitcoin ETFs. If this trend continues, Ethereum ETFs could surpass Bitcoin ETFs in terms of the percentage of total supply contained by September, according to the analyst. This shift reflects a broader institutional and retail investor preference for Ethereum over Bitcoin.

The recent price movements have also affected the sentiment in the cryptocurrency market. The Crypto Fear & Greed Index, which tracks overall market sentiment, shifted to “Fear” with a score of 44 on Wednesday, signaling growing caution among investors following a prolonged period of optimism. However, some analysts remain cautious about interpreting short-term outflows as a long-term trend. Ryan Park of 21Rates noted that a few days of outflows do not necessarily indicate a decline in institutional interest in crypto assets, adding that it is still early to draw definitive conclusions.

Looking ahead, the performance of Ethereum ETFs and the broader market will likely be influenced by macroeconomic developments, including the upcoming Federal Reserve meeting minutes and Federal Reserve Chair Jerome Powell’s speech at Jackson Hole. These events could provide clarity on the future of interest rates and inflation, which are key factors in investor decision-making. For now, Ethereum ETFs remain a structurally significant component of the market, with continued buying from digital asset treasuries and institutional investors playing a critical role in determining price trajectories.

Source:

[1] Spot Ether ETFs See $197M Outflows, Second-Largest Ever (https://cointelegraph.com/news/ether-etfs-197m-outflows-second-largest)

[2] Bitcoin, Ether ETFs post almost $1B outflows as prices slide (https://cointelegraph.com/news/crypto-funds-bleed-bitcoin-outflows-surge-5x-ether-outflows-double)

[3] US Ethereum ETFs face second-largest outflow of $196.6 ... (https://cryptoslate.com/insights/us-ethereum-etfs-face-second-largest-outflow-of-196-6-million-in-a-day/)

[4] Radiant Capital hacker doubles $53M stash via ETH trading (https://crypto.news/radiant-capital-hacker-doubles-funds-eth-trading-2025/)

[5] Radiant Capital Hacker's Astounding Profit: Stolen Funds ... (https://coinstats.app/news/fbe6143df7bbea8165f03c5565db4626e690f5d4cae2d79768b73d7cb19538f6_Radiant-Capital-Hackers-Astounding-Profit-Stolen-Funds-Nearly-Double-Through-ETH-Trades)

[6] Ethereum ETFs Lose $197 Million—Even Worse Than Bitcoin ... (https://finance.yahoo.com/news/ethereum-etfs-lose-197-million-152531921.html)

[7] US spot Ethereum ETFs now hold over 5% of ETH supply (https://www.theblock.co/post/367378/ethereum-etfs-eth-supply)

[8] Spot Bitcoin ETFs post $523 million in daily outflows ... (https://www.theblock.co/post/367570/spot-bitcoin-ether-etfs-outflows-institutions-reposition)