Ethereum ETFs Experience First Seven-Day Outflow Streak of the Year

In a notable development, U.S. spot Ethereum exchange-traded funds (ETFs) have recorded their first outflow streak of the year, experiencing seven consecutive days of withdrawals totaling over $390 million.

Key Takeaways

U.S. spot Ethereum ETFs saw $390+ million in outflows over the past week.
BlackRock’s ETHA led the outflows with $140.24 million.
Investment manager’s ETHB ETF attracted $96.81 million, helping to partially offset losses.
The outflow streak comes after a six-day inflow period of over $386 million.
Investors are shifting capital toward traditional safe-haven assets amid geopolitical tensions and inflation concerns.

According to SoSoValue data, the collective net outflows for the 10 spot ETH ETFs amounted to $92.54 million on Thursday, March 26. The outflows were primarily driven by BlackRock’s ETHA, which alone saw $140.24 million exit. However, the staked Ethereum ETF (ETHB) managed to mitigate some losses, drawing in $96.81 million on the same day.

U.S. spot Ethereum ETFs hit a 7-day inflow streak | Source: SoSoValue

As of now, these financial products have experienced redemptions for seven straight days, culminating in a total outflow of $391.65 million. This comes after a six-day inflow period that brought in over $386 million, indicating that institutional investors may be pulling back from the market. This decision aligns with rising concerns about a prolonged conflict between the U.S. and Iran, influencing broader market stability for risk assets.

Additionally, a portion of these withdrawals may stem from capital reallocation toward BlackRock’s ETHB, which offers investors native staking yields compared to traditional spot ETFs that merely track the asset's price. BlackRock previously announced it would waive some sponsor fees in a bid to maintain competitiveness with an initial asset base of $2.5 billion.

Investors are also reallocating funds from these ETFs into conventional safe-haven assets such as gold and other precious metals, as rising oil prices continue to exert inflationary pressure, adding to fears of increased global inflation and a more aggressive Federal Reserve.

On a monthly basis, the ETH ETFs are nearing the end of their 5th consecutive month of net outflows, which began in November, totaling nearly $2.85 billion in exits.

The price of Ethereum has plummeted by over 45% from its year-to-date peak, dropping to $1,815 in late February. This decline has been influenced by ongoing ETF outflows, a general market downturn stemming from the U.S.-Iran conflict, escalating energy prices, and decreasing expectations for Federal Reserve interest rate cuts this year. As of now, Ethereum is trading at $2,065, down 2.7% within the last 24 hours.

Market analysts, including Tom Lee, Head of Research at Fundstrat and Chairman of the Ethereum treasury company Bitmine, have identified the current market conditions as a potential bottom for Ethereum. This perspective coincides with Bitmine’s aggressive accumulation strategy, aiming for a target of 5% of the total circulating supply.

This trend is further supported by Ethereum balances on exchanges, which have decreased to an all-time low—a clear indication of accumulation, whether from retail investors or institutional players like Bitmine, who may be positioning for future price increases.

Ethereum ETFs enter first 7-day outflow streak of the year.