- Ether ETFs record $795.8 million in outflows over five days as ETH price falls 10.8% to $3,995.
- Staking approval looms; Grayscale prepares to stake ETH holdings amid regulatory pressure.
- Bitcoin ETFs face $897.6 million in outflows, but analysts call them the “largest launch ever.”
U.S.-listed spot Ether exchange-traded funds (ETFs) have experienced a second sustained run of outflows within a month, underscoring investors’ continued caution in crypto markets.
These redemptions come as Ether (ETH) fell more than 10% over the past week, reflecting broader concerns about crypto demand and regulatory uncertainty.
Five consecutive days of outflows from Ether ETFs
Data from Farside shows spot Ether ETFs posted net outflows for five straight trading days this week, totaling $795.8 million.
On Friday alone, investors redeemed $248.4 million, capping a difficult week for the products.
Ether’s price declined 10.8% to $3,995.33 over the past seven days at the time of reporting.
This marks the first five-day outflow stretch for Ether ETFs since the week ending September 5, when the asset was trading near $4,300.
Repeated outflow pressure points to a reduction in short-term investor appetite, although longer-term developments—particularly around staking—could reshape sentiment over time.
Staking approval could change market dynamics
Market participants continue to watch the U.S. Securities and Exchange Commission (SEC) for signals about whether staking will be permitted within spot Ether ETFs.
Staking, which allows investors to earn yields by locking up ETH, could provide additional incentives for long-term holders and increase the utility of these ETF products.
On September 19, reports indicated Grayscale is preparing to stake a portion of its significant Ether holdings, which some market observers interpret as a vote of confidence that regulators may soon greenlight staking in exchange-traded products.
Despite the potential catalyst, current trading data highlights ongoing selling pressure.
Cointelegraph noted Binance’s net flows have remained negative over the last month, suggesting retail participation in Ether has cooled off.
Crypto analyst Bitbull described the ETF outflow streak as “a sign of capitulation, given the level of panic selling.”
Bitcoin ETFs also face withdrawals
The selling trend was not limited to Ether.
Spot Bitcoin ETFs recorded five consecutive days of outflows totaling $897.6 million over the same period.
Bitcoin’s price fell 5.28% over the past week and was $109,551 at the time of publication.
Although recent outflows signal a slowdown in momentum, analysts remain broadly optimistic about the long-term prospects for Bitcoin ETFs.
ETF analyst James Seyffart said on a podcast that while Bitcoin ETFs haven’t been “totally hot over the past couple of months,” they still represent “the largest launch ever.”
“The amount of money that’s come in here is different from anything we’ve ever seen,” Seyffart added, noting that Bitcoin ETFs have performed “as well as you could hope.”