Spot Ether ETFs Record $952M Outflows in Five Days Amid Recession Fears
Spot ether ETFs logged a fifth consecutive day of outflows, shedding $952 million over five days, including $787 million during the four-day trading week. Friday saw the sharpest decline, with $446.7 million exiting these funds. In contrast, spot bitcoin ETFs attracted $246.4 million in net inflows over the past week, following a record August when ether ETFs pulled in $3.87 billion even as bitcoin ETFs saw $751 million in outflows.
Ether’s price has risen more than 16% in the past month, buoyed by the GENIUS Act’s passage, which restricts stablecoin issuers from paying interest and may spur greater institutional adoption. However, ether slipped 1.8% last week, trading just below $4,300. These outflows in ether ETFs underline growing risk aversion among traders and could pressure ether’s price in the near term.
The recent sell-off reflects a broader rotation out of risk assets after weak U.S. jobs data raised expectations for Federal Reserve rate cuts. Traders now price in an 89% chance of a 25-basis-point cut later this month and an 11% chance of a 50-basis-point cut, according to CME FedWatch. Meanwhile, growing recession fears and geopolitical tensions have driven gold above $3,600.
Bearish
Sustained outflows from ether ETFs signal heightened risk aversion among traders. Large withdrawals often precede downward price pressure, as seen in past fund outflow waves that coincided with short-term corrections. The contrast with bitcoin ETF inflows underscores a rotation away from ether. Weak U.S. jobs data and rising recession fears have shifted capital toward safe havens like gold, compounding selling pressure. While the GENIUS Act offers long-term regulatory clarity that may boost institutional demand, the immediate impact is negative. Expect continued short-term volatility and potential price declines for ether.