Ethereum spot ETFs see $447m in net outflows, second-largest on record

Ethereum spot ETFs recorded $446.71 million in net outflows on Sept. 5. This is the second-largest single-day outflow since the products launched.

Summary

• Ethereum ETFs saw $446.7m outflows Sept 5, second-largest since launch.
• BlackRock led with $309.9m in redemptions, followed by Grayscale and Fidelity.
• ETH trades near $4,300 after recent highs of $4,900 triggered profit-taking.

The only larger outflow occurred on Aug. 4, when investors pulled $465.06 million from the funds.

The massive outflows came as Ethereum (ETH) traded around $4,300, down from recent highs near $4,900 reached earlier in the month.

The selling pressure reduced cumulative net inflows to $12.73 billion. This is the lowest level since late August, when ETF assets stood at $13.51 billion.

BlackRock, Grayscale Lead ETF Activity

Daily flow data shows consistent selling pressure throughout early September. On Sept. 4, ETFs saw $167.41 million in outflows, followed by smaller redemptions of $38.24 million and $135.37 million on Sept. 3 and 2, respectively.

Weekly data reveals the extent of recent selling activity. The week ending September 5 saw $787.74 million in net outflows, erasing gains from the previous week when ETFs attracted $1.08 billion.

Market data from Sept. 5 shows mixed performance across individual Ethereum ETF products. BlackRock’s ETHA fund trading on NASDAQ saw the largest outflows at $309.88 million and maintained a small premium of 0.25% to net asset value.

Grayscale’s ETHE product on the NYSE recorded $51.77 million in outflows. Fidelity’s FETH fund on CBOE experienced $37.77 million in redemptions.

Smaller ETF products showed varied flows. Grayscale’s ETH fund saw $32.62 million in outflows. Several funds including ETHW, ETHV, and EZET showed zero net flows but maintained small premiums above their net asset values.

The 21Shares TETH product bucked the trend with minimal outflows of $14.68 million.

Ethereum Price Volatility Drives ETF Sentiment

The ETF outflows coincide with Ethereum’s recent price volatility after a strong annual performance. ETH has gained 80% over the past year but experienced swings in the last 30 days.

As per market data, the ETH price has moved from a low of $3,880 to the recent high of $4,900.

Current trading around $4,300 represents a pullback from September peaks, potentially triggering profit-taking among institutional investors.

The ETF flow patterns suggest large holders may be reducing exposure after Ethereum’s rapid appreciation earlier in the month.

Total ETF assets under management have also fallen to $27.64 billion as of Sept. 5, down from $28.58 billion the previous week.