U.S.-listed spot Ethereum exchange-traded funds (ETFs) faced their worst week since launching, with nearly $800 million in outflows, coinciding with a significant drop in ETH’s price.
Key Takeaways:
- Spot Ethereum ETFs saw approximately $795 million in outflows during the week ending September 26, marking the largest weekly redemption since their launch in July 2024.
- The outflows were caused by a combination of technical breakdowns, macroeconomic uncertainties, and cascading liquidations in the derivatives market.
- ETH’s price dipped below the critical $4,000 level, reaching $3,800 before rebounding slightly to $4,200 by Saturday.
The week of September 22-26 proved challenging for U.S.-listed spot Ethereum ETFs, which experienced a record $795.6 million in outflows. This marks the worst weekly performance since the funds began trading in July 2024. Notably, BlackRock’s ETHA fund saw redemptions exceeded $200 million, while Fidelity’s FETH was impacted even more severely, with $362 million flowing out. On Thursday and Friday alone, Ethereum ETFs witnessed $248.31 million in redemptions each day as of September 26, according to SoSoValue’s real-time data, contributing to the overall outflow.
Record weekly outflows from U.S.-listed spot Ethereum ETFs. Source: SoSoValue
Crypto news outlet Wu Blockchain also highlighted the massive outflow on their official X (formerly Twitter) account, emphasizing the ETH’s and BTC’s spot ETFs net outflow during the trading week of September 22 to 26 while referencing to SoSoValue’s updated on-chain data. BTC recorded a net outflow of approximately $904 million, which ended its four-week streak of inflows.
Market analysts point to a mix of factors behind the exodus. Ethereum’s price broke below key technical support levels, sparking a wave of deleveraging from traders who had built up leveraged long positions. At the same time, macroeconomic headwinds, particularly concerns over inflation and the trajectory of interest rates, weighed on investor sentiment and reduced appetite for risk assets. The rapid decline triggered cascading liquidations in derivatives markets, creating a self-reinforcing cycle of selling that deepened the losses.
ETH Slip Below $4,000 Amid ETF Sell-Off
ETH still continues to face downtrend and sideways movement these past few weeks, making the bears take over amid ETH sell-off. As of this writing (12:00PM UTC, TradingView shows ETH is trading at approximately $3,992.03, dropping modestly 0.2% over the past 24 hours. The token reached intraday highs near $4,031.45 and lows around $3,986.21, according to CoinGecko.
The significant outflows and price decline underscore the volatility and sensitivity of Ethereum's market to institutional sentiment and macroeconomic factors. Despite a slight rebound above the $4,000 mark, the overall trend indicates a cautious outlook among investors.
Outlook: Investor Caution May Persist
The record outflows from spot Ethereum ETFs highlight the challenges facing the cryptocurrency market amid broader economic uncertainties. While Ethereum's price has shown some resilience, the underlying factors contributing to the outflows suggest that investors remain wary. If macroeconomic pressures persist, further redemptions could exacerbate downward price movements. Traders and investors will need to monitor both technical indicators and broader economic developments closely to navigate the evolving market landscape.
Summary
U.S.-listed spot ETH ETFs registered ~$800M in weekly redemptions—the worst since launch—while ETH briefly slipped below $4,000 before a modest rebound. Analysts cite technical breakdowns, macro headwinds, and cascading liquidations as drivers, reinforcing a cautious stance among investors.
