Ethereum News Today: Institutional Exodus From Ethereum ETFs Contrasts With Bitcoin’s Strong Inflows

Recent developments in the cryptocurrency market highlight a notable divergence between Ethereum ETF outflows and spot market dynamics, contrasting with the more consistent inflows into Bitcoin ETFs. Ethereum’s BlackRock ETF, ETHA, recorded a significant outflow of $312.5 million in a single week, with the only positive inflow occurring on September 4 at $148.8 million. This was quickly offset by substantial redemptions on September 3 and September 5, amounting to $151.4 million and $309.9 million respectively [2]. This trend reflects broader pressure on U.S. spot Ethereum ETFs, which had previously seen strong inflows in August. The outflows indicate a shift in institutional sentiment toward Bitcoin, where ETFs like BlackRock’s IBIT have recorded inflows, suggesting a rotation toward the more established digital asset [2].

On-chain data reveals an interesting pattern in Bitcoin ETF inflows, particularly from long-term holders or "diamond hands." Three major waves of inflows occurred in Summer 2024, Fall 2024, and Summer 2025, each coinciding with spikes in the Coin Days Destroyed (CDD) metric. CDD measures the total number of "coin days" destroyed when dormant Bitcoin tokens are moved, signaling activity from long-term holders. The correlation between these inflows and CDD spikes implies a reallocation of old Bitcoin supplies into ETF structures [1]. However, the most recent wave of inflows has since returned to a neutral level, suggesting a temporary pause in new demand. Analysts have noted that without sustained inflows, selling pressure from new ETF holders could increase [1].

The Ethereum market is now testing critical support levels amid these outflows. At press time, ETH was trading at $4,281, a slight increase from the past 24 hours but a 4% decline on the week [2]. Technical analysis highlights the importance of the $4,260 level, a key pivot point that has repeatedly acted as a barrier to further declines. Failure to hold this threshold could push the price toward the psychological $4,000 support. Additionally, Ethereum has shown persistent resistance above $4,380 and $4,500, indicating ongoing selling pressure from institutional players. Despite this, retail and offshore buyers have somewhat cushioned ETH from steeper losses [2].

The divergence between Bitcoin and Ethereum ETF dynamics underscores broader shifts in investor behavior and risk appetite. While Bitcoin ETFs continue to attract institutional capital, Ethereum ETFs appear to be facing outflows amid growing uncertainty and macroeconomic volatility. This may reflect a preference for more liquid or less volatile assets in the current market environment. The performance of Ethereum around the $4,260 level will be a key indicator of whether retail demand can offset institutional selling pressure [2].

Looking ahead, Ethereum’s ability to stabilize above key support levels and generate sustained buying pressure will depend on both technical factors and macroeconomic developments. The upcoming macroeconomic calendar, including potential interest rate decisions and broader market sentiment toward risk assets, will play a crucial role in shaping the trajectory of Ethereum. For now, the data suggests that Ethereum ETF outflows are not directly translating into equivalent spot market selling pressure, as retail and offshore buyers continue to provide a floor for the asset [2].

Source: [1] Old Bitcoin Supply Keeps Moving Into ETFs: Data Shows ... (https://www.mitrade.com/insights/news/live-news/article-3-1101385-20250906) [2] BlackRock dumped over $300 million Ethereum this week (https://finbold.com/blackrock-dumped-over-300-million-ethereum-this-week-incoming-sell-off/)