Ethereum ETFs Lose $1B as Investors Pull Back
Ethereum’s spot exchange-traded funds have seen more than $1 billion vanish over the past week, a sharp reversal that underscores growing caution in risk markets.
Data from Farside Investors shows $1.04 billion in outflows across six trading sessions, capped by a $96.7 million withdrawal on Monday.
BlackRock’s ETHA bore the brunt of the selling with nearly $193 million in redemptions, though Fidelity, Grayscale, and its mini fund drew modest inflows that helped soften the blow. Daily withdrawals ranged from $38 million midweek to a staggering $447 million on Friday, leaving total ETF assets at $27.39 billion — about 5.3% of Ethereum’s market cap.
Rate Cut Optimism Fades
The exodus reflects fading faith that the Federal Reserve’s September rate cut will deliver meaningful support for the economy.
While markets are fully pricing in a 25bps trim, strategists like JPMorgan’s David Kelly warn that lower rates could depress retirement income and corporate sentiment instead of sparking growth. Defensive positioning is already evident in rising gold prices, muted Treasury yields, and a stagnant U.S. dollar.
Ethereum itself is holding just above $4,250 with resistance near $4,500, while Bitcoin trades in a similar range between $108,800 support and $114,200 resistance.
Bitcoin ETFs See Rebound
In contrast, Bitcoin products have turned positive. Spot ETFs recorded $368 million in inflows on Monday after two days of redemptions totaling $387 million. That lifted total assets to $145.4 billion and pushed cumulative net inflows back above $54.8 billion.
For now, Bitcoin funds are providing a counterweight to Ether’s weakness — but with macro uncertainty dominating sentiment, crypto ETFs remain highly sensitive to every signal from the Fed.
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Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
