Ether ETFs Lose $1.2 Billion in October

Spot Ether ETFs lost $1.2 billion in October, their worst month of the year. At the same time, Bitmine is approaching the 5% cap on the supply it set for itself. The two buyers driving the demand are withdrawing together.

Ether ETF and Bitmine, the two demand drivers stall

Ether demand relied this year on two pillars, spot ETFs and Bitmine Immersion Technologies. The first turned red in October. The second is about to stop, as confirmed by Tom Lee with a hard cap set at 5% of supply.

The simultaneity is the important point. The two buyers are not only slowing at the same time; they have represented so far most of the marginal demand. Their combined withdrawal leaves a gap that adoption flows, no matter how numerous, do not mechanically fill.

From massive inflows to net outflows

The reversal is clear. Funds attracted $1.85 billion in August, then $832 million in September. October shows $1.2 billion in net outflows, at an average rate of about $357 million per week. Investors sold every trading day except two until October 22.

The weight of funds remains considerable. They hold about 6.2 million ETH, for combined net assets of $14.6 billion, a volume comparable to Bitmine’s reserves. Two portfolios of this size retreating simultaneously weigh on the order book far more than just their flows.

September was not an isolated accident. October outflows extend an earlier movement, and our October 11 article already pointed out the worst week of the year for the segment.

Who will absorb the supply

The arithmetic poses the following question. Ethereum issues about 20,000 ETH per week, and Bitmine absorbed a significant part. Over the last two weeks, the company only bought about 12,500, versus more than 100,000 per week on four occasions in April and May.

The slowdown is thus already underway, even before the cap. Bitmine has been buying weekly since June 30, 2025, without interruption, and the final pace is nothing like the start of the campaign. The company documents its weekly purchases on its website.

Two nuances prevent concluding too quickly. Ethereum’s issuance is not fixed, since a burn mechanism adjusts supply to actual network demand. And adoption flows continue, as illustrated by JPMorgan bringing its deposit token on Ethereum this week.

The fundamental question remains. No other corporate treasurer today has comparable capacity, and the ETFs, which drove demand for two months, are selling. For ether to hold until year-end, fund flows must turn positive again, or a new buyer must take over.