TL;DR
- U.S. spot Ethereum ETFs recorded their largest single-day net outflow to date, totaling $465 million, with BlackRock’s iShares Ethereum Trust leading the exit.
- Despite the pullback, long-term accumulation continues among institutional wallets, with over $3.1 billion in ETH collected since early July.
- Ether’s price drop has raised questions about short-term sentiment, but underlying demand suggests continued confidence in the asset and blockchain ecosystem across global markets and institutions.
After several weeks of strong performance, U.S.-listed spot Ethereum exchange-traded funds faced a sharp reversal on Monday, reporting $465 million in combined net outflows, according to data from Farside Investors. The largest share of that exodus came from BlackRock’s iShares Ethereum Trust (ETHA), which alone saw nearly $375 million pulled out. This marks the biggest daily outflow event for ETH ETFs since their official launch.
Ether itself declined by 12% from last Thursday’s local high, briefly touching $3,380 over the weekend. However, it showed signs of recovery by Tuesday, trading around $3,629. While some view this correction as a cooling-off period following a powerful July rally, others point to macro conditions and ETF profit-taking as temporary factors in a longer-term bullish cycle supported by strong fundamentals.
BlackRock and Fidelity See Largest Pullbacks
BlackRock’s ETHA fund, despite leading Monday’s losses, still holds an impressive cumulative net inflow of $9.3 billion and $10.7 billion in assets under management. Fidelity’s Ethereum Fund (FETH) followed with $55 million in outflows, maintaining a solid $2.4 billion in total assets under control.
Grayscale’s products also faced modest redemptions, with the Grayscale Ethereum Mini Trust seeing $28 million exit, and the larger Grayscale Ethereum Trust losing just under $7 million. The data suggests a measured rebalancing rather than a panic-driven exodus, as total inflows remain significantly positive across major issuers despite recent volatility and short-term uncertainty in market behavior.
Institutional Accumulation Signals Long-Term Confidence
Even as ETFs recorded substantial outflows, blockchain activity tells a different story. On-chain analysis by Lookonchain shows that institutional entities and large holders continue acquiring ETH in large volumes. Over 63,000 ETH—worth roughly $236 million—was accumulated via over-the-counter deals with FalconX and Galaxy Digital on Tuesday alone.
Since July 9, at least 14 newly identified wallets, believed to be linked to funds or high-net-worth entities, have collectively amassed more than 850,000 ETH. This persistent accumulation hints at strategic positioning rather than exit behavior, highlighting that short-term ETF flows don’t necessarily reflect overall demand or long-term conviction in Ethereum’s potential and growing relevance in decentralized finance globally.
