Ether ETFs Face $952M Outflows as Bitcoin Funds Gain Flows

Spot Ether exchange-traded funds (ETFs) recorded $952 million in outflows over five trading days, raising concerns across digital asset markets. Investors reduced exposure to Ether products managed by major firms such as BlackRock and Fidelity, while capital shifted toward bitcoin ETFs. The withdrawals came during a period of rising recession fears and increased expectations of monetary policy easing in the United States.

Outflows Pressure Ether Funds

Ether ETFs lost nearly $787 million in the shortened four-day trading week as per SoSoValue data. The largest daily withdrawal occurred on September 5, when $446.71 million exited these funds. This was a sharp reversal from August, when spot Ether ETFs attracted $3.87 billion in inflows.

The recent movement contrasted with activity in Bitcoin funds. Spot Bitcoin ETFs posted $246.4 million in net inflows during the same week. Analysts noted that investors favored Bitcoin as a perceived safer digital asset during a period of uncertainty. BlackRock’s iShares Bitcoin Trust (IBIT) led inflows and grew its assets under management to $58.6 billion.

Ether’s price reflected the changing sentiment. Despite a 16% increase over the past month, the token slipped 1.8% in the last week. It traded just below $4,300 as investors reacted to shifting macroeconomic conditions.

Economic Concerns Drive Risk Aversion

Market participants connected the outflows to wider concerns about the global economy. Weak U.S. jobs data added to expectations of slower growth and raised the probability of interest rate cuts by the Federal Reserve. Prediction market data placed odds of a larger cut at around 12%.

The broader environment saw investors moving away from risk assets. Alongside cryptocurrencies, gold also saw heightened demand, trading above $3,600 for the first time. This mirrored patterns seen during previous episodes of market stress when capital moved into traditional safe-haven assets.

Regulatory Context and Market Outlook

The GENIUS Act, passed earlier this year, was expected to support Ether adoption by offering regulatory clarity. It restricted stablecoin issuers from paying interest and provided a framework viewed positively by institutions. This development helped drive August inflows into Ether ETFs.

However, the recent withdrawals may invite closer examination from regulators as they monitor market stability. Experts suggest that large-scale redemptions are often followed by periods of adjustment rather than lasting declines. Historical data indicates that digital asset markets have stabilized after similar movements in the past.

While Ether faced selling pressure, analysts continued to reference its long-term potential. Growth in staking, tokenization, and decentralized finance applications are cited as drivers of future adoption. Some forecasts project that Ether could reach much higher valuations in coming years, although short-term performance remains tied to investor sentiment and economic conditions.