US spot Ethereum exchange-traded funds (ETFs) experienced net outflows totaling $320.1 million for the week ending October 16, surpassing the $228.4 million in net withdrawals seen by US spot Bitcoin ETFs during the same period, according to Farside Investors. This data indicates a divergence in fund flows, with Ethereum ETFs recording higher outflows for the week.
Ethereum ETF Outflows Detailed
During the week of October 12-16, BlackRock’s iShares Ethereum Trust (ETHA) was a significant contributor to these redemptions, accounting for approximately $299 million, which represents about 93% of the total outflows from Ethereum ETFs for the week. In contrast, Fidelity’s FETH managed to record modest positive flows.
The preceding five sessions had already shown substantial outflows from Ethereum ETFs, totaling around $542 million. The week began with an industry-wide withdrawal of $85.4 million on Monday, followed by a brief respite with a $24.8 million inflow on Tuesday. However, selling pressure returned on Wednesday, Thursday, and Friday, contributing to the week’s overall net outflow.
Comparative Performance and Uncertainty
While the outflows from Ethereum ETFs were significant, they were not the worst on record for Ether funds. The data highlights a divergence in institutional investor behavior between Ethereum and Bitcoin. The concentration of withdrawals in the largest Ethereum product, ETHA, raises questions about institutional appetite for Ethereum compared to Bitcoin, particularly if institutional interest in digital assets returns. It remains uncertain whether institutional appetite will return to Ethereum as quickly as it does to Bitcoin.
It is important to note that ETF flow figures reflect the creation and redemption of fund shares, and do not represent a direct measure of all demand for Ether. The current data indicates a trend of net withdrawals from US spot Ethereum ETFs, with a significant portion attributed to a single large fund, while Bitcoin ETFs also experienced outflows, albeit at a lower rate for the reported week.
Why This Matters
The materials describe a narrow update: US spot Ethereum ETFs saw net withdrawals of $320.1 million in the week ending October 16. Whether institutional appetite will return to Ethereum as quickly as it does to Bitcoin remains uncertain.
Broader Context
Ethereum investment funds have ended another difficult week on the wrong side of the ledger.
