What is causing Ethereum ETFs to experience significant outflows?
- Ethereum ETFs struggled with consistent outflows, led by Grayscale’s ETHE, impacting overall net flows. Despite ETF outflows, ETH price showed resilience, maintaining bullish momentum above the neutral RSI.
Since its debut on the 23rd of July, Ethereum [ETH] ETFs have struggled to keep pace with their Bitcoin [BTC] counterparts, consistently facing challenges in sustaining inflows.
Instead of showing steady growth, ETH ETFs have been marked by frequent outflows, culminating in a substantial cumulative outflow of $79.3 million as of the 23rd of September—the largest single-day outflow observed since the 29th of July.
This pattern has fueled discussions and concerns within the crypto community, raising questions about whether Ethereum can reverse this trend or if the current outflows will continue to dominate.
ETH ETFs face massive outflows
The substantial outflows from ETH ETFs are largely driven by Grayscale’s ETHE, which recently recorded a significant outflow of $80.6 million.
In contrast, Blackrock’s ETHA, along with other ETH ETFs, reported zero inflows during this period. Bitwise’s ETHW was the exception, managing a modest inflow of $1.3 million.
A closer look at the data shows that most ETH ETFs have consistently posted zero flows, with sporadic inflows from ETHA and occasionally from Fidelity’s FETH and ETHW.
Source: Farside Investors
However, ETHE’s heavy outflow has been sufficient to tip the overall net flows into negative territory.
Total flow since launch — explained
Notably, as of the 23rd of September, ETHW’s net purchases totaled $320 million, with its Ether holdings exceeding 97,700 coins, valued at around $261 million at current market prices.
Additionally, since its inception, Blackrock’s ETHA has emerged as the leading ETH ETF in terms of inflows, amassing a total of $1,039.6 million, the highest among its peers.
In contrast, Grayscale’s ETHE has faced significant challenges, with a massive outflow totaling $2,848.4 million—an amount that exceeds the combined outflows of all other ETH ETFs, which collectively amount to $686.9 million.
Community sentiment
This stark contrast highlights the divergent investor sentiment and performance dynamics within the ETH ETF landscape.
Remarking on the same, an X user noted,
“The daily ETF flow for September 23rd shows a significant outflow, predominantly from ETHE with an $80.60M decrease. It suggests investors might be rotating out of Ethereum-focused ETFs.”
Adding to the fray was another X user who said,
Source: X
ETH price action
In terms of price movement, ETH demonstrated resilience on the 23rd of September, rising by 3.02% to trade at $2,656.39, standing in stark contrast to the performance of ETH ETFs.
However, at press time, ETH was down by 0.75%, trading at $2,635.08 as per CoinMarketCap.
Notably, the RSI remained above the neutral level at 59, signaling that bullish momentum continues to dominate, despite the short-term pullbacks.
These minor declines are likely temporary and do not overshadow the broader positive outlook for ETH, suggesting that the current bearish moves are not indicative of a long-term trend reversal.
Source: TradingView
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