US-Based Spot Ethereum ETFs Experience Their Biggest Outflow Since Launch! Here Are the Details

US-based spot Ethereum ETFs recorded their largest single-day outflow since their launch on Monday, with net outflows of $465.1 million.

$465 Million Daily Outflow in Spot Ethereum ETFs: Analysts Point to Profit Taking

This outflow follows record weekly inflows in July of $2.2 billion (second week), $1.9 billion (third week) and $154.3 million (last week), respectively, according to SoSoValue data.

BlackRock’s ETHA fund experienced the highest outflow on Monday with $375 million, while Fidelity’s FETH, Grayscale’s ETHE and Ethereum Mini Trust funds also saw outflows.

Nick Ruck, Director of LVRG Research, said this move indicates short-term profit taking, but does not necessarily indicate a decline in institutional demand.

These outflows reflect short-term profit-taking following ETH’s recent rally. Following a record $5.4 billion inflow into the sector in July and the accumulation of ETH by companies, we can say that long-term demand remains strong.

Vincent Liu, CIO of Kronos Research, expressed a similar view:

“This move should be interpreted as a risk-averse trend and short-term closing, not as a long-term lack of confidence in ETH.”

Ethereum was trading at $3,675 at the time of writing, up 4.1% in the last 24 hours following a weekend decline.

Peter Chung, Head of Research at Presto Research, stated that the $465 million outflow may have actually occurred on Friday. Chung emphasized that weak nonfarm payroll data triggered a sell-off in the markets and that ETF flow data was reflected with a 1-2 day lag.

“Markets rallied strongly last night. Therefore, we may see these uptrends reverse tomorrow. It’s important not to overstate daily fluctuations.”

On the other hand, spot Bitcoin ETFs experienced a net outflow of $333.2 million on Monday, while this figure was recorded as $812.3 million on Friday.

*This is not investment advice.