Spot ETH ETFs See $1B Outflows as Fed Rate-Cut Hopes Cool
Spot Ether ETFs have bled over $1 billion in just six days, as investors turned risk-off amid fading optimism around U.S. interest rate cuts.
- Spot ETH ETFs shed $1.04B across six consecutive trading days.
- Monday alone saw $96.7M in net outflows, led by BlackRock’s ETHA at $192.7M.
- Total ETH ETF assets now sit at $27.39B, or 5.28% of ETH’s market cap.
- Analysts warn Fed rate cuts may not deliver the economic boost investors expect.
- Spot BTC ETFs saw a sharp rebound with $368M in inflows, breaking a two-day outflow streak.
Spot Ether ETFs recorded a staggering $1.04 billion in net outflows over six consecutive sessions, according to SoSoValue. The largest daily withdrawal came Friday at $446.7 million, while the smallest was $38.2 million on Wednesday.
On Monday, BlackRock’s ETHA led withdrawals with $192.7 million in redemptions. Outflows were partially cushioned by inflows of $75 million into Fidelity’s FETH, $9.5 million into Grayscale’s ETHE, and $11 million into its mini fund. Total trading volume hit $1.52 billion, with aggregate net assets sliding to $27.39 billion — about 5.28% of Ether’s total market cap.
The selloff reflects broader macro caution. Despite CME FedWatch Tool pricing in a 100% chance of a September 25bps rate cut, JPMorgan strategist David Kelly cautioned that lower rates may backfire by reducing retirement income and weakening business sentiment. Analysts from Bitunix noted ETH is holding above the $4,250–$4,300 support zone, with resistance near $4,500. Bitcoin is showing similar technical dynamics.
Meanwhile, Bitcoin ETFs broke their own outflow streak. After losing $387 million over two days, spot BTC ETFs rebounded Monday with $368.25 million in net inflows. Total assets rose to $145.41 billion, with cumulative inflows climbing back to $54.86 billion.
Final Thought
ETH ETFs are under heavy pressure as investors hedge against a shaky macro backdrop, while BTC products continue to prove more resilient. If Fed policy delivers less stimulus than expected, ETH could face more turbulence before regaining momentum.
