Ethereum News Today: Investors Flee Ethereum ETFs Amid Record Unstaking Jam

U.S. spot Bitcoin and Ethereum ETFs experienced a combined outflow of approximately $1 billion in the week ending August 19, 2025, according to recent tracking data. The exodus was most pronounced in Ethereum-based funds, which saw a record second-largest single-day outflow of $196.7 million on August 19, following a $59 million outflow on August 16. This brought the two-day total outflow for Ethereum ETFs to $256 million, highlighting a shift in investor preference amid broader market volatility and increased unstaking activity.

The outflow pressures were driven by a surge in the Ethereum unstaking queue, which reached an all-time high of 910,000 ETH, or approximately $3.9 billion in value, on August 20. Stakers are now facing extended wait times of at least 15 days and 14 hours to unstake their holdings, raising concerns among market observers about a potential “unstakening”—a scenario where a large volume of ETH is withdrawn from staking pools, possibly impacting market liquidity and price stability. Analysts, including Timothy Misir of BRN, have noted that these factors are negatively influencing short-term sentiment.

Among issuers, BlackRock and Fidelity recorded the largest outflows from their Ethereum ETFs, with $87 million and $79 million, respectively, on August 19. BlackRock’s iShares Ethereum Trust ETF (ETHA), which holds approximately 3.6 million ETH, saw its holdings decrease in dollar terms from $15.8 billion to $15.6 billion within a single reporting period. Ethereum’s price has also retreated by roughly 6.5% since the beginning of August, according to CoinGecko, compounding the outflow trend.

Bitcoin ETFs, while also experiencing outflows, fared slightly better, with $122 million withdrawn on August 19. Despite this, Bitcoin’s price remains near an all-time high, with whale activity suggesting continued accumulation. Over the past six days, 20,061 BTC was added to wallets holding at least 10,000 coins, indicating that institutional and large investors remain bullish.

The shift in investor behavior toward Ethereum ETFs in recent weeks has raised speculation about whether Ethereum’s ETF market share will surpass that of Bitcoin. As of August 19, Ethereum ETFs held 5.08% of the total ETH supply, while Bitcoin ETFs held 6.38% of the total BTC supply. Hildobby, a data analyst at Dragonfly, suggested that if the current growth rate continues, Ethereum ETFs could overtake Bitcoin ETFs in market share by September 2025. This potential shift reflects growing institutional interest in Ethereum’s post-merge upgrades and its role in decentralized finance (DeFi).

The broader cryptocurrency market remains sensitive to macroeconomic and geopolitical developments. On August 19, U.S. President Donald Trump hosted European leaders at the White House to discuss the war in Ukraine, following stalled negotiations with Russian President Vladimir Putin. Analysts noted that further diplomatic progress could influence investor risk appetite, potentially supporting a renewed rally in both Bitcoin and Ethereum.

Source: [1] New Data From Fidelity Investments® Reveals Confidence Among Self-Directed Investors Despite Tumult (https://newsroom.fidelity.com/pressreleases/-new-data-from-fidelity-investments--reveals-confidence-among-self-directed-investors-despite-tumult/s/46faefed-b826-4a16-a1b3-3ff9a6a2cf41) [2] Spot Ether ETFs See $197M Outflows, Second-Largest Ever (https://cointelegraph.com/news/ether-etfs-197m-outflows-second-largest) [3] Ethereum ETFs Lose $197 Million—Even Worse Than Bitcoin (https://finance.yahoo.com/news/ethereum-etfs-lose-197-million-152531921.html) [4] European ETF investors favour global equities while... (https://citywire.com/wealth-manager/news/european-etf-investors-favour-global-equities-while-ditching-govt-bonds-in-july/a2471815)