- Ether ETFs saw $795.8 million of outflows over five consecutive days as ETH price drops 10.8% to $3,995.
- A staking decision from the SEC is looming; Grayscale prepares to stake part of its ETH holdings amid regulatory pressure.
- Bitcoin ETFs also faced $897.6 million in outflows, though analysts call them “the largest launch in history.”
U.S. spot Ether exchange-traded funds (ETFs) recorded a second sustained stretch of outflows in under a month, underscoring persistent investor caution in the crypto market.
The sell-off coincides with Ether (ETH) falling more than 10% over the past week, reflecting broader concerns about demand for the cryptocurrency and regulatory uncertainty.
Five consecutive days of outflows for Ether ETFs
According to Farside data, spot Ether ETFs posted five straight days of net outflows this week, totaling $795.8 million.
Friday alone saw $248.4 million withdrawn, capping a difficult week for these products.
Ether’s price declined 10.8% to $3,995.33 over the past seven days at the time of writing.
This marks the first time Ether ETFs have experienced a five-day outflow streak since the week ending September 5, when the token traded near $4,300.
The repeated pressure signals waning short-term investor appetite, even though longer-term catalysts around staking could shift market sentiment.
Staking approval could alter market dynamics
Market participants continue to watch for signals from the U.S. Securities and Exchange Commission (SEC) about whether staking will ultimately be permitted within spot Ether ETFs.
Staking — which allows investors to earn yield by locking up ETH — could provide an added incentive for long-term holders and increase the appeal of these products.
On September 19, reports emerged that Grayscale plans to stake part of its sizable Ether holdings, a move some interpret as a vote of confidence that regulators may soon allow staking in exchange-traded products.
Despite this potential catalyst, current trading flows point to ongoing selling pressure.
Cointelegraph noted that net taker volume on Binance has remained negative over the past month, indicating cooling retail participation in Ether.
Crypto analyst Bitbull described the ETF outflow streak as “a sign of capitulation, as panic selling was very high.”
Bitcoin ETFs also see withdrawals
Sell-side momentum was not limited to Ether.
Spot Bitcoin ETFs recorded five consecutive days of outflows as well, totaling $897.6 million over the same period.
Bitcoin’s price fell 5.28% over the past week, trading around $109,551 at the time of publication.
While the recent outflows reflect a cooling momentum, analysts remain broadly optimistic about the long-term trajectory of Bitcoin ETFs.
ETF analyst James Seyffart, speaking on a podcast Thursday, said that although Bitcoin ETFs haven’t been “perfectly hot over the last few months,” they still represent “the largest launch of all time.”
“The amount of money that went into these products is unlike anything we’ve ever seen,” Seyffart said, adding that Bitcoin ETFs are performing “as well as you could have hoped.”