Ethereum ETFs Experience $196.6M Outflow, Led by BlackRock, Fidelity

TLDR

• US Ethereum ETFs saw a significant outflow of $196.6 million on August 18.
• The outflow was the second-largest daily redemption since the ETFs debuted.
• BlackRock’s ETHA experienced the largest loss, with $86.9 million pulled out.
• Fidelity’s FETH followed closely with redemptions worth $78.4 million.
• Other issuers such as Grayscale, Franklin Templeton, and VanEck also saw withdrawals.

US Ethereum ETFs experienced a significant outflow on August 18, with investors pulling $196.6 million from these funds. This marked the second-largest daily redemption since the products debuted. The sudden outflows primarily came from the largest issuers, with BlackRock and Fidelity seeing the highest redemptions.

Ethereum ETFs Face Major Redemptions in One Day

BlackRock’s Ethereum ETF, ETHA, saw the largest drop, losing approximately 20,000 ETH, valued at $86.9 million. Fidelity’s Ethereum ETF, FETH, followed closely, with redemptions worth $78.4 million. These significant outflows from the top issuers contributed heavily to the total outflow of $196.6 million on the day.

Despite the heavy losses in these two major ETFs, other Ethereum ETFs also saw smaller withdrawals. Grayscale’s Ethereum fund faced an outflow of $18.7 million, while Franklin Templeton’s EZET saw $6.6 million exit. VanEck’s ETHV and Bitwise’s ETHW also registered outflows of $4.8 million and $1 million, respectively.

A Streak of Inflows Preceded the Setback

The significant outflow came after a strong eight-day streak of inflows, during which Ethereum ETFs saw more than $3.7 billion added to their assets. This period of positive momentum was a clear indication of growing institutional interest in Ethereum. However, the recent withdrawals have not yet overshadowed the overall positive market sentiment surrounding Ethereum ETFs.

Even with the outflows on August 18, the cumulative net inflows into Ethereum ETFs have surpassed $12 billion. A substantial portion of these inflows arrived over the last two months, signaling an accelerated pace of institutional adoption. As of now, Ethereum ETFs hold approximately $27.7 billion in assets under management, accounting for 5.34% of Ethereum’s total market capitalization.

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