- Ether ETFs saw outflows totaling $795.8 million over five days as the ETH price dropped 10.8% to $3,995.
- A pending SEC decision on staking looms; Grayscale is preparing to stake ETH amid pressure on its holdings.
- Bitcoin ETFs also experienced $897.6 million in outflows, though analysts call them “the largest rollout of all time.”
U.S.-listed spot Ether exchange-traded funds (ETFs) recorded their second prolonged stretch of outflows within a month, highlighting continued investor caution in the market.
The sell-off coincided with Ether (ETH) losing more than 10% of its value over the past week, reflecting broader concerns about crypto demand and regulatory uncertainty.
Five straight days of outflows from Ether ETFs
Data from Farside show that spot Ether ETFs posted net outflows for five consecutive days this week, amounting to a total of $795.8 million.
On Friday alone, $248.4 million were withdrawn, capping a difficult week for the products.
Ether’s price fell 10.8% over the past seven days to $3,995.33.
This marks the first five-day outflow streak for Ether ETFs since the week of September 5, when the asset traded near $4,300.
The sustained outflows point to a cooling appetite among investors in the near term, even though longer-term developments around staking could shift market sentiment.
Staking approval could change market dynamics
Market participants are still awaiting signals from the U.S. Securities and Exchange Commission (SEC) on whether staking will eventually be permitted within spot Ether ETFs.
Staking — which allows investors to earn yield by locking up ETH — could provide an additional incentive for long-term holders and increase the appeal of these products.
On September 19, reports indicated that Grayscale is preparing to stake part of its substantial Ether holdings, a move some interpret as a vote of confidence that regulators may soon allow staking within exchange-traded products.
Despite this potential catalyst, recent trading data emphasize ongoing selling pressure.
Cointelegraph noted that net taker volume on Binance remained negative last month, suggesting retail participation in Ether is waning.
Crypto analyst Bitbull described the ETF outflow streak as “a sign of capitulation, given how high panic selling was.”
Outflows also hit Bitcoin ETFs
The sell-off was not limited to Ether.
Spot Bitcoin ETFs likewise experienced outflows over five days, totaling $897.6 million during the same period.
Bitcoin’s price fell 5.28% in the past week and was trading at $109,551 at the time of publication.
While recent outflows reflect a cooling period, many analysts remain broadly optimistic about the long-term prospects for Bitcoin ETFs.
ETF analyst James Seyffart said on a podcast Thursday that although Bitcoin ETFs “haven’t been perfectly timed in recent months,” they remain “the largest rollout of all time.”
“The amount of money that has come in is unlike anything we’ve ever seen,” Seyffart added, noting that Bitcoin ETFs are performing as well as one could hope.