TLDR
- Ethereum ETFs have experienced four consecutive days of outflows, totaling $167.41 million on Thursday.
- Fidelity’s FETH fund saw the largest outflow, with $216.68 million exiting the fund.
- Despite the overall trend, BlackRock’s ETHA fund managed to secure a net inflow of $148.8 million.
- The trend of Ethereum ETF outflows started on August 29 and has continued through early September.
- Institutional buying from companies like Bitmine and SharpLink Gaming continues to support Ethereum, despite ETF outflows.
The US spot Ethereum ETF market has seen capital outflows for the fourth consecutive day, signaling a shift in investor sentiment. On Thursday, the market experienced a net outflow of $167.41 million, causing Ethereum’s price to close at $4,275. The trend of outflows began on August 29, which has now resulted in a consistent drop in capital from Ethereum ETFs.
Ethereum ETFs Face Large Outflows Amid Shifts
Fidelity’s FETH fund experienced the largest outflow, with $216.68 million leaving the fund. This significant capital exit led to a decrease in the total Ethereum ETF market value. In contrast, Bitwise’s ETHW also recorded a notable outflow of $45.66 million. According to Soso Value’s data, this marks a major shift in investor behavior for Ethereum ETFs, after months of consistent inflows.
BlackRock’s ETHA fund, however, bucked the trend. It managed to secure a positive flow, attracting a net inflow of $148.8 million. Despite the overall outflows, BlackRock’s ETHA shows that some investors remain confident in the long-term outlook of Ethereum ETFs.
Consistent Outflows Signal Shift in ETH ETFs
The recent four-day streak of outflows from Ethereum ETFs is part of a broader market trend. On August 29, Ethereum ETFs saw a net outflow of $164.64 million. This was followed by a $135.37 million outflow on September 2 and a further $38.24 million exit on September 3.
These consistent outflows reflect a shift in short-term investor sentiment toward Ethereum ETFs. While institutional buying continues, as seen with Digital Asset Treasury companies, the market faces challenges. Despite strong support from institutions, the trend of ETF outflows suggests that Ethereum’s price is under pressure.
Although Ethereum ETFs have faced four days of outflows, institutional interest in Ethereum remains robust. Bitmine, a public company, purchased 78,000 ETH on August 28 and another 74,300 ETH on September 2. SharpLink Gaming and The Ether Machine also made large acquisitions of Ethereum, showing that large players are not backing down.
The persistence of institutional buying contrasts with the short-term pressure on Ethereum ETFs. However, the outflows from Ethereum ETFs have coincided with a 1.4% drop in the price of ETH.
