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Ethereum ETFs See $251M Outflow While Bitcoin Attracts Institutional Investment During Market Turbulence

Ethereum ETFs See $251M Outflow While Bitcoin Attracts Institutional Investment During Market Turbulence

Bitget-RWA2025/09/28 01:40
By:Coin World

- Ethereum ETFs saw $251.2M net outflows on 9/25/2025, the largest single-day withdrawal since July 2024 product launches. - Fidelity's FETH led redemptions at $158.1M (63%), contrasting with Bitcoin ETFs' $241M inflows, highlighting divergent crypto investor sentiment. - Analysts linked outflows to profit-taking and macro risks (Fed policy, geopolitics), though Ethereum ETFs still maintained $13.6B cumulative inflows since launch. - Corporate treasuries offset ETF redemptions by accumulating $2.2B in ETH,

On September 25, 2025, spot Ethereum exchange-traded funds (ETFs) in the US saw unprecedented net withdrawals totaling $251.2 million, the largest single-day outflow since these funds debuted in July 2024. The majority of this movement came from major issuers, with Fidelity’s FETH fund responsible for $158.1 million—approximately 63% of the day’s total—followed by

($30.3 million), ($27.6 million), and BlackRock’s ETHA ($26.1 million). This marked the fourth straight day of net outflows for ETFs, continuing a pattern of investor caution amid heightened market uncertainty.

These withdrawals coincided with Ethereum’s price dropping below $4,000 for the first time since mid-2025 Coinlineup.com [ 3 ]. Blockchain data revealed mixed trends, with some accumulation in decentralized wallets even as ETF redemptions increased Coinlineup.com [ 3 ]. In contrast,

ETFs attracted $241 million in new investments that same day, highlighting a split in investor attitudes toward the two top cryptocurrencies XT.COM [ 8 ]. Analysts pointed to short-term profit-taking and broader economic uncertainty—including Federal Reserve actions and geopolitical risks—as key drivers of the Ethereum outflows.

Despite the recent withdrawals, total inflows into Ethereum ETFs since their July 2024 launch remained strong at $13.6 billion Coinlineup.com [ 3 ]. However, the $251.2 million outflow on September 25 sharply contrasted with the inflow streaks seen in July and August, which together exceeded $5.4 billion. Grayscale’s Ethereum Trust (ETHE) continued to experience heavy redemptions, with over $4.5 billion withdrawn since inception, as investors favored newer ETFs with lower fees Blockchain.News [ 2 ]. BlackRock’s ETHA, the largest Ethereum ETF by assets, saw some inflows during the month but finished September with net outflows Blockchain.News [ 2 ].

The recent outflows have sparked debate about the long-term viability of ETF-driven demand for Ethereum. Data from Farside Investors indicated that significant outflow days often aligned with short-term price drops, though institutional interest over the long term remained steady. Some of the ETF redemptions were offset by corporate treasuries, which accumulated $2.2 billion in Ethereum during August and September. Bitmine and SharpLink, two prominent corporate holders, increased their reserves by 373,100 ETH ($1.6 billion) and 143,600 ETH ($617.7 million), respectively.

Market experts highlighted the complex relationship between ETF flows and Ethereum’s price. While daily outflows can put downward pressure on prices, broader influences such as derivatives markets, macroeconomic factors, and on-chain supply trends play a more significant role in price movements. Kaiko’s 2025 report found a moderate correlation (R² ~0.32) between ETF flows and daily ETH returns, with stronger connections during extended directional flows or major macroeconomic events. The September withdrawals took place during a period of increased risk aversion, as Ethereum ETFs competed with Bitcoin ETFs for institutional investment.

The record-setting outflows illustrate the shifting influence of ETFs within the crypto market. By December 2024, Ethereum ETFs accounted for 19% of US Ethereum trading volume, signaling greater institutional involvement. However, the recent wave of redemptions also demonstrated the sensitivity of these products to economic and regulatory changes. As Ethereum’s market matures, the interaction between ETF flows, corporate accumulation, and on-chain activity will remain key to evaluating long-term investor sentiment.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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