Ethereum ETFs Lose $1B as Investors Pull Back

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.

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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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