Ethereum spot exchange-traded funds (ETFs) registered $446.71 million in net outflows on September 5, marking the second-largest single-day withdrawal since their introduction.
Key Highlights
- Ethereum ETFs saw $446.7 million exit on September 5, the second-highest outflow since inception.
- The largest withdrawals came from BlackRock at $309.9 million, followed by Grayscale and Fidelity.
- Ethereum is currently trading near $4,300, down from recent peaks of $4,900 as investors took profits.
- The only larger single-day outflow occurred on August 4, when $465.06 million was pulled from these products.
These heavy redemptions coincided with Ethereum hovering around $4,300, below the month’s earlier highs near $4,900.Ongoing selling pressure has dragged cumulative net inflows down to $12.73 billion, marking the lowest point since late August when assets were valued at $13.51 billion.
ETF Activity Led by BlackRock and Grayscale
Daily flow data shows continued withdrawals in early September. Outflows on September 4 reached $167.41 million, preceded by $38.24 million on the 3rd and $135.37 million on the 2nd. Net withdrawals totaled $787.74 million for the week ending September 5, offsetting much of the $1.08 billion that had flowed in just a week earlier.
Among individual funds, BlackRock’s ETHA product recorded the largest outflow at $309.88 million, though it maintained a slight premium of 0.25% to net asset value. Redemptions from Grayscale’s ETHE fund reached $51.77 million, with Fidelity’s FETH fund also experiencing $37.77 million in exits. Smaller products also reflected selling, including Grayscale’s ETH fund with $32.62 million withdrawn. Several funds such as ETHW, ETHV, and EZET showed no net flows but continued to trade slightly above net asset value. The 21Shares TETH product stood out with relatively minimal outflows of $14.68 million.
Ethereum Price Volatility Shapes Investor Sentiment
The wave of ETF redemptions came amid significant price swings in Ethereum following a strong yearly performance. ETH has risen 80% over the past 12 months but has been volatile over the last 30 days, ranging from a low of $3,880 to a recent peak of $4,900.
Current trading near $4,300 reflects a pullback from earlier highs, likely driving profit-taking among institutional players. Flow trends suggest larger holders may be reducing exposure after Ethereum’s sharp climb earlier in September.
As of September 5, total ETF assets under management had fallen to $27.64 billion, down from $28.58 billion the week before.
