- Ethereum ETFs lost $446.71 million on September 5, marking the second-largest single-day outflow since their launch.
- BlackRock’s ETHA fund led the redemptions with $309.88 million, followed by Grayscale and Fidelity products.
- Ethereum’s price pullback to $4,300 triggered institutional profit-taking, contributing to reduced ETF inflows and AUM.
Ethereum spot exchange-traded funds experienced a substantial wave of redemptions on September 5, resulting in $446.71 million in net outflows. This marks the second-largest single-day withdrawal since these products became available. The only larger outflow occurred on August 4, when $465.06 million was withdrawn from the funds.
The majority of the outflows were led by BlackRock. Its NASDAQ-listed ETHA fund accounted for $309.88 million in redemptions, though it continued to trade at a slight 0.25% premium to its net asset value. Grayscale followed with $51.77 million in outflows from its ETHE product, while Fidelity’s CBOE-listed FETH fund saw $37.77 million withdrawn.
Weekly Totals Show Intensified Selling
Daily redemption data confirms growing selling pressure in early September. ETFs recorded outflows of $167.41 million on September 4, with $38.24 million and $135.37 million exiting on September 3 and 2, respectively. Weekly data shows that the total net outflows reached $787.74 million by the end of September 5. This activity reversed inflows from the previous week when $1.08 billion had entered Ethereum ETF products.
Some smaller funds experienced more modest movements. Grayscale’s ETH fund saw $32.62 million in outflows, while 21Shares’ TETH product recorded $14.68 million. Other ETFs such as ETHW, ETHV, and EZET showed no net flows during the period, although they maintained slight premiums to net asset value.
Price Volatility Sparks Institutional Profit-Taking
The spike in outflows aligned with price volatility in Ethereum markets. ETH, which had rallied to a high of nearly $4,900 earlier in the month, was trading around $4,300 on September 5. This represented a significant pullback and may have triggered profit-taking among institutional investors.
Following the week’s activity, total assets under management across Ethereum spot ETFs dropped to $27.64 billion. This is a decline from $28.58 billion a week earlier. Cumulative net inflows fell to $12.73 billion, reaching the lowest level since late August, when assets stood at $13.51 billion.
