Ethereum News Today: Ethereum ETFs Suffer $465 Million Outflows as Inflows Streak Ends

Ethereum exchange-traded funds (ETFs) experienced a sharp exodus of funds on Monday, with total outflows exceeding $465 million, according to data from SoSoValue [1]. This marks a significant reversal from earlier momentum seen in the Ethereum ETF market. BlackRock’s iShares Ethereum Trust ETF (ETHA) suffered the most substantial outflow, losing approximately $375 million. The Fidelity Ethereum Fund (FETH) followed closely, with outflows of $55.1 million. Notably, no Ethereum ETF recorded a positive net flow on the day, with many remaining flat [1].

The outflows come after a strong performance in July, when Ethereum ETFs attracted $5.4 billion in inflows—an impressive figure considering Ethereum’s smaller market capitalization relative to Bitcoin [1]. During the same period, the price of Ethereum surged nearly 50%, nearly reaching $4,000. However, the momentum appears to have stalled at the start of August, with ETFs recording outflows on two consecutive days. On August 1, Ethereum ETFs saw $152.26 million in outflows, ending a 20-day streak of consecutive inflows [1]. Despite the recent outflows, Ethereum ETFs have still attracted a total of $9.02 billion in inflows since the beginning of the inflow period.

The Ethereum outflows occurred alongside a broader decline in demand for crypto-related ETFs. Bitcoin ETFs also saw outflows of $333 million, although the figure was less severe than the $812.25 million outflows recorded earlier in the week [1]. This highlights the volatile nature of ETF flows in the crypto market, where inflows can spike as quickly as they drop. The recent outflows raise questions about investor sentiment and short-term market dynamics, particularly amid the broader crypto market’s mixed performance.

Despite the outflows, Ethereum’s price has risen by approximately 4% in the past 24 hours, suggesting that long-term investors remain unfazed by the ETF selling [1]. However, the divergence between price movements and ETF flows indicates that investor behavior and fund dynamics are not always aligned. Analysts will likely be watching closely for signs of a reversal in fund flows, which could signal a broader shift in market sentiment.

Source:

[1] title: Ethereum ETFs See Devastating Outflows of $465 Million (url: https://u.today/ethereum-etfs-see-devastating-outflows-of-465-million)