Spot Ethereum ETFs See Six Straight Days of Outflows Totaling $1Billion

Spot Ethereum ETFs have experienced six consecutive days of outflows, totaling approximately $1 billion. This shift reflects a broader move away from risk assets as expectations of Federal Reserve rate cuts diminish. The sustained withdrawals have dampened institutional sentiment toward ETH, favoring instead less volatile investments like bonds and, in some cases, Bitcoin ETFs.

Flows and Totals

Over the six-day period, outflows averaged roughly $166 million per day, culminating in a total withdrawal of around $1 billion. This rebalancing reflects a swift and significant repositioning by institutional investors amid changing macroeconomic conditions.

Issuers and Notable Movements

Outflows were not uniform across issuers. Fidelity saw consistent withdrawals from its FETH product, while BlackRock’s ETHA fund received a substantial inflow of approximately $148.8 million, partially offsetting the broader negative trend. Other issuers, including Bitwise, Grayscale, and VanEck, also faced notable redemption pressures.

Monetary Policy, Bond Markets, and Impact on ETH

With reduced expectations of Fed rate cuts, Treasury yields climbed, making fixed-income assets more attractive relative to riskier holdings like Ethereum. This environment limited appetite for spot ETH ETFs and prompted a rotation into bonds and yield-bearing alternatives. The outflows contributed to minor price adjustments in ETH, though the asset held broadly steady. Some investors also turned to staking or other yield-generating strategies not typically available through spot ETFs.

Factors to Watch and Implications

Key variables that could influence future flows include:

• Messaging from the Federal Reserve

• Levels of U.S. Treasury yields

• Buying activity from major institutional issuers

A dovish turn from the Fed could reverse outflows, while persistently high yields may sustain the current trend. The evolution of these factors will shape both ETH’s price and the product structures needed to regain institutional confidence.