Ethereum News Today: Institutional Giants Trigger Crypto Exodus as ETFs Face $1B Outflow Surge

BlackRock, the world’s largest asset manager, has offloaded over $360 million worth of Bitcoin (BTC) and Ethereum (ETH) in a single day, reflecting broader outflows from its crypto exchange-traded funds (ETFs). According to Arkham Intelligence data, BlackRock moved 1,885 BTC valued at $111.66 million and 59,606 ETH worth $254.43 million to Coinbase Prime, a move typically seen as a precursor to a sell-off. These outflows are part of a broader trend affecting the crypto ETF landscape, where investors have been redeeming assets following recent price corrections and profit-taking from record inflows earlier in the month [4].

The Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT), have seen a four-day outflow streak, with the firm’s ETF alone recording $220 million in outflows on August 20. SoSoValue data indicates that the group of Bitcoin ETFs, including those from Ark Invest, Grayscale, and Fidelity, collectively recorded a net outflow of $311.57 million in a single day. Meanwhile, Ethereum ETFs, including BlackRock’s iShares Ethereum Trust (ETHA), saw $257.78 million in outflows on the same day. Despite the outflows, Grayscale and Fidelity’s Ethereum ETFs recorded minor net inflows, but the total net outflow across all Ethereum ETFs for the day reached $240.14 million [3].

These outflows follow a significant correction in crypto prices. According to CoinGecko, Bitcoin’s price dropped over 8% in the past seven days, retreating from a peak of $124,000 to around $112,000. Similarly, Ethereum’s price fell more than 10%, declining from a high of $4,700 to $4,100. The market downturn has coincided with a rise in the Ethereum unstaking queue, a metric that measures the amount of ETH waiting to be withdrawn from staking pools. As of August 20, the queue had reached 910,000 ETH, valued at approximately $3.9 billion, according to ValidatorQueue. This has led to extended wait times for validators, now averaging over 15 days, raising concerns about a potential "unstakening" effect in the Ethereum network [2].

BlackRock's ETHA fund, one of the largest institutional holders of Ethereum, has seen a decline in its holdings. As of August 18, the fund held around 3.6 million ETH, valued at $15.8 billion, down 1.5% to $15.6 billion due to price fluctuations. Over the past three days, Ethereum ETFs have recorded a total outflow of $678 million, with major players like BlackRock, Fidelity, and Grayscale collectively offloading approximately $160 million worth of ETH. This marks a reversal of a month-long trend of steady inflows into the ETFs and signals a shift in institutional sentiment [5].

Despite the recent outflows, the broader Ethereum ETF market remains robust. According to SoSoValue data, Ethereum ETFs currently manage approximately $2.6 billion in assets under management, and the total supply of ETH held in ETFs still accounts for about 5% of the circulating supply. Some market observers suggest that the short-term volatility does not negate the long-term positive trajectory for Ethereum, particularly as its 50, 100, and 200-day exponential moving averages remain in an upward trend. However, with the relative strength index (RSI) dropping to 54 from an overbought level earlier in the month, the market has shifted to a neutral sentiment. A key technical support level at $4,135 remains critical; if Ethereum holds above this level, it could see a rebound toward the $4,500 to $4,700 range [2].

The market's cooling trend has also led to a shift in investor sentiment. The Crypto Fear & Greed Index, a tool used to gauge market psychology, flipped to "Fear" with a score of 44 on August 20, signaling growing caution among investors following a period of optimism. This shift aligns with the broader outflows and price corrections, though some analysts remain cautious in interpreting the data. Bloomberg ETF analyst Eric Balchunas has noted that short-term outflows should not be overinterpreted, as they may reflect routine trading rather than a structural shift in demand [1].

Source:

[1] Cointelegraph, Bitcoin, Ether ETFs post almost $1B outflows as prices slide

[2] Xt.com, ETH Outflow Worsens As BlackRock And Fidelity Dump ETH ETFs

[3] CryptoSlate, US Bitcoin and Ethereum ETFs face $1 billion outflow amid market dip

[4] Coingape, BlackRock Dumps $111M BTC and $254M ETH as Crypto ETFs Outflows Persist

[5] Cointelegraph, Spot Ether ETFs See $197M Outflows, Second-Largest Ever