US Ethereum ETFs Record First Consecutive Outflow Weeks Since April — What’s Happening?

The US-based spot Ethereum ETFs (exchange-traded funds) have registered a second consecutive week of capital outflows. This negative trend comes on the back of what has been a disappointing price performance by the second-largest cryptocurrency in October. Following months of significant capital influx, the Ethereum ETFs seem to be in a cool-off period, with a shift in investor sentiment also seemingly in play.

US Ethereum ETFs Post $93.6 Million Outflow

According to the latest market data, the US Ethereum ETF market registered a daily total net outflow of $93.6 million on Friday, October 24. This negative closing performance marked the third straight day of outflows for the crypto-linked investment products.

Interestingly, BlackRock’s iShares Ethereum Trust (with the ticker ETHA) was the only ETH exchange-traded fund that recorded a negative outflow on the day. The largest Ethereum ETF by net assets lost nearly $101 million in value to close the week.

Meanwhile, Grayscale Ethereum Mini Trust (with the ticker ETH) was the only other spot ETH exchange-traded fund that saw any trading activity on Friday. Data from SoSoValue shows that the Ether-linked investment product witnessed a capital influx of $7.4 million.

This negative $93.6 million performance compounded what had been a disappointing week for the US Ethereum ETFs, growing the current outflow streak to three straight days. Meanwhile, this daily performance brought the ETF’s weekly record to around $243.9 million total net outflow.

What’s more worrying is that this is the second consecutive weekly outflow for the Ethereum ETFs for the first time since April, signaling reduced investor appetite. Demand for the exchange-traded funds, which has been quite a bright spot for Ethereum in recent weeks, seems to now be waning.

Ethereum Price Overview 

It is difficult to dissociate the performance of the US Ethereum ETFs from the price action of the underlying asset. This direct relationship can be spotlighted from last week’s performance, as the price of Ethereum struggled to get going in the last seven days.

While this sluggish condition has been a general concern for the crypto market, the large-cap assets seem to have it worse at the moment. The Ethereum price, for instance, has particularly struggled to recover and hold above the psychological level of $4,000. 

As of this writing, the price of ETH stands at around $3,950, reflecting a mere 0.7% leap in the past 24 hours.

Featured image from iStock, chart from TradingView