Ethereum News Today: Investors Flee Ethereum ETFs, Shift $795M to Bitcoin as Macro Hedge

Ethereum ETFs experienced their largest weekly outflows since their launch in July 2024, totaling $795.6 million for the week ending September 26, 2025, marking a reversal from an eight-day, $2 billion inflow streak earlier in the year Ethereum ETFs Face Record Outflows as Ether Reclaims $4,000^[1]. The outflows followed a brief dip in ETH's price below $4,000, triggering a two-day exodus of $250 million per day from funds, the worst 48-hour stretch since mid-August Spot Ethereum ETFs Suffer $800M in Outflows, Worst Week Since …^[2]. BlackRock's ETHA and Fidelity's FETH, the two largest Ethereum ETFs, were hardest hit, with FETH alone losing $362 million in a single week Ethereum ETFs Face Record Outflows as Ether Reclaims $4,000^[1]. Despite the redemptions, ETH's price rebounded above $4,000 by late September, signaling potential stabilization Ethereum ETFs Face $505M Outflows Amid Market Volatility^[3].

The outflow trend mirrored broader market dynamics, as Bitcoin ETFs also recorded $902.5 million in weekly outflows, with Fidelity's FBTC losing $300 million on a single day Spot Ethereum ETFs Suffer $800M in Outflows, Worst Week Since …^[2]. BlackRock's IBIT, the largest Bitcoin ETF, maintained its dominance, holding over 80% of the spot Bitcoin ETF market despite the sell-off Spot Ethereum ETFs Suffer $800M in Outflows, Worst Week Since …^[2]. Analysts attributed the outflows to a combination of technical breakdowns, macroeconomic uncertainty, and liquidations of leveraged positions during the ETH price dip Ethereum ETFs Face Record Outflows as Ether Reclaims $4,000^[1].

Ethereum's ETF inflow momentum had previously driven a 215% price surge from $1,519 in April 2025 to $4,739 in mid-August, fueled by $2.27 billion in weekly inflows Ethereum vs Bitcoin: ETF Inflows and Market Reactions^[4]. However, the recent outflows highlight growing investor caution, with capital rotating back into Bitcoin as a macro hedge amid delayed Federal Reserve rate cuts and inflation concerns Ethereum ETFs Face $505M Outflows Amid Market Volatility^[3]. Despite this, Ethereum's structural advantages-such as staking yields (3–6%), deflationary supply dynamics, and institutional adoption-remain intact Ethereum ETFs Face $505M Outflows Amid Market Volatility^[3].

The ETF outflow period also coincided with renewed interest in Ethereum's staking capabilities, as Grayscale's Ethereum Trust ETF became the first U.S.-listed spot crypto ETF to allow direct staking Ethereum ETFs See Record 547M Inflows: Next Target 4500-5000?^[6]. While Grayscale staked 304,000 ETH ($1.3 billion), the Ethereum network faced a 2.4 million ETH unstaking queue, signaling potential selling pressure Ethereum ETFs See Record 547M Inflows: Next Target 4500-5000?^[6]. Meanwhile, dormant Ethereum whale wallets began liquidating large holdings, adding to market volatility Ethereum ETFs See Record 547M Inflows: Next Target 4500-5000?^[6].

Technical indicators suggest a critical juncture for ETH. A sustained close above $4,200–$4,250 could propel the price toward $4,500–$5,000, while a breakdown below $3,800 may trigger further declines . Institutional accumulation, including BitMine's 2.65 million ETH treasury and Bit Digital's $100 million convertible note, underscores long-term bullish sentiment . However, short-term volatility is expected as ETF flows and macroeconomic factors remain intertwined Ethereum vs Bitcoin: ETF Inflows and Market Reactions^[4].