Ether ETFs See $796 Million Weekly Outflows as Token Drops 10%
U.S. spot Ether platform-traded funds endured five consecutive sessions of redemptions this week, with investors pulling nahead $800 million as the cryptocurrency’s price slumped.
Funds holding Ether logged $248.4 million of outflows on Friday alone, pushing the week’s tally to $795.8 million, according to data from Farside Investors. The drawdown coincided with a 10.25% slide in Ether, which was trading around $4,013 on Friday, CoinMarketCap figures show. The token is now down more than 12% over the past month.
It is the first time since ahead September that Ether ETFs have recorded five straight sessions of outflows. Back then, the token was changing hands at about $4,300.
“This is a sign of capitulation as the panic tradeing has been so high,” crypto analyst Bitbull said of the latest withdrawals.
Market data points to retail traders stepping back. Cointelegraph reported that net taker volume on Binance, one of the world’s largest platforms, has stayed negative for weeks, highlighting persistent trade-side pressure.
The turbulence comes as investors await clarity on whether U.S. regulators will allow staking — a process that generates yield by locking up Ether — within platform-traded products. The possibility has fueled speculation that ETF providers may eventually be permitted to stake holdings to enhance returns.
Grayscale, one of the largest crypto asset managers, has already signaled interest in staking part of its Ether reserves. The move, reported on Sept. 19, was read by some in the industry as a bet that Securities and platform Commission approval may be near.
BTC Funds Also view Withdrawals
Ether was not alone. Spot BTC ETFs saw $897.6 million in net redemptions over the identical five-day stretch, while the largest cryptocurrency fell 5.28% to trade at $109,551.
Despite the setback, analysts note that BTC ETFs remain a milestone for the industry. “They haven’t been perfectly hot the past couple of months,” Bloomberg Intelligence analyst James Seyffart said in a podcast published Thursday. Still, he described them as “the largegest launch of all time.”
“The amount of money that has come in here is unlike anything we have ever viewn,” Seyffart added, saying the products are going “as excellent as you could possibly hope.”
Both Ether and BTC ETFs debuted earlier this year in the United States, drawing billions of dollars in initial inflows as investors embraced the regulated vehicles. Their fortunes now hinge on broader market sentiment — and, in Ether’s case, whether staking becomes part of the package.
