Ethereum ETFs See $39.21M Outflows as Market Sentiment Shifts

• Grayscale’s Ethereum Trust saw the largest outflows, with $42.52M leaving the fund, impacting overall Ethereum ETF sentiment.
• Ethereum ETFs experienced $39.21M in net outflows, contrasting with a modest $11.11M inflow for Bitcoin ETFs, reflecting market uncertainty.
• Trading volumes rose across both Ethereum and Bitcoin ETFs, but the outflows suggest a cautious investor approach towards Ethereum products.

On Thursday, the U.S. spot Ethereum exchange-traded funds (ETFs) recorded $39.21 million in net outflows. This marked a significant reversal after three consecutive days of inflows, highlighting the unpredictable nature of the cryptocurrency market. Investors appeared to withdraw their funds from Ethereum-based products following a brief period of positivity.

Grayscale Dominates Ethereum ETF Outflows

The majority of the outflows were attributed to Grayscale’s Ethereum Trust (ETHE), which saw $42.52 million exit the fund. This substantial movement made Ethereum ETFs among the leading funds to experience net outflows on Thursday, according to data from SosoValue. The outflow was the largest among the nine Ethereum ETFs, underscoring the cautious turn in investor sentiment despite recent stable flows.

Trading Activity Increases Despite Outflows

Interestingly, the total trading volume for the nine Ethereum ETFs reached $240.58 million on Thursday, a notable increase from $155.91 million on Wednesday. Despite the heightened trading activity, the large net outflows suggest that investor sentiment is becoming increasingly cautious toward Ethereum, even as the market remains active.

Meanwhile, Bitcoin ETFs experienced mixed results. Thursday’s daily net creation for U.S. spot Bitcoin ETFs was relatively low at $11.11 million. This followed significant net outflows of $81.36 million on Wednesday, reflecting a slight recovery in market sentiment toward Bitcoin. However, not all Bitcoin ETFs saw gains.

Fidelity’s FBTC led the inflows with $16.25 million in new investments, followed by the Mini Trust with $13.66 million and BITB with $6.23 million. In contrast, Grayscale’s BTC fund continued to experience outflows, with $25.3 million leaving the fund. This extended the fund’s streak to 11 consecutive days of outflows, raising concerns among investors.