- Ethereum ETFs rebounded with $287.6M inflows after heavy outflows, showing investor confidence can return quickly despite volatility.
- July saw record ETF inflows above $900M daily, but August reversed with $1.73B outflows, proving sentiment shifts can be sudden.
- Ethereum network remains strong with 1.7M daily transactions and $88B DeFi value locked, showing adoption continues despite ETF swings.
Ethereum spot ETFs have staged a strong comeback after several days of heavy outflows, reigniting investor confidence in the asset. On August 20, net inflows surged to $287.6 million, pushing total ETF assets to $26.55 billion.
The rebound came after four straight days of losses, offering renewed optimism to market participants. During this period, Ethereum traded at $4,224.10, reflecting the cautious but recovering sentiment in broader crypto markets.
Source: Carl Moon
Institutional Flows Show Cyclical Patterns
ETF flows in 2025 revealed clear cycles of investor activity. February and March saw muted inflows, with institutions remaining cautious. However, April marked the start of momentum, as daily inflows picked up steadily. By May, inflows became more frequent, showing growing interest in Ethereum exposure.
The most dramatic surge arrived in July when inflows spiked above $900 million on single trading days. Green bars dominated charts, signaling strong buying pressure and heavy institutional demand. Moreover, this July rally marked the highest recorded activity across all months, reflecting peak appetite for Ethereum investment products.
August, though, brought a change. Often, red bars appeared, signifying significant net outflows. The highest known ETF outflow occurred in just three days, when investors pulled out $1.73 billion. Particularly during periods of market volatility, this reversal demonstrates how swiftly institutional perception may shift.
Network Activity Remains Resilient
Ethereum’s on-chain metrics are still robust outside of ETFs. Nearing its peak of 1.9 million transactions per day, the network handled 1.7 million transactions every day. Daily active addresses are also still strong at about 550,000, which is a little less than the 580,000 from the week before. This action highlights Ethereum’s steady use in spite of ETF volatility.
Source: DefiLIama(X)
In decentralized finance, Ethereum maintains dominance with $88.87 billion locked in DeFi protocols. However, this figure has dropped by over $8 billion from last week’s $97 billion. The decline reflects short-term liquidity pullbacks, yet the sector continues to hold significant capital.
Ethereum ETFs continue to attract massive institutional flows, despite volatility. Strong network activity shows adoption remains firm, but investor sentiment can shift quickly.
