Ethereum ETFs experience $787 million outflows following record August inflows
After a record-breaking August, U.S. spot Ether ETFs faced a setback last week, experiencing significant outflows since their launch. In just four trading sessions during the shortened Labor Day week, Ethereum funds saw a total of $787.6 million in outflows. The most substantial portion of this, almost $447 million in redemptions, occurred on Friday alone.
This reversal is quite stark compared to August when Ethereum ETFs saw an inflow of $3.87 billion, while Bitcoin ETFs experienced outflows of approximately $751 million during the same month. Interestingly, the recent trend has flipped, with Bitcoin funds attracting $250.3 million in inflows just as Ether faced withdrawals.
Despite the outflows, Ethereum’s price performance remains favorable. The asset has seen a 16% increase over the past 30 days, even though it has dipped by almost 3% in the last week, hovering around $4,301. Sentiment indicators like the Crypto Fear & Greed Index have lingered at a “Neutral” level, reflecting uncertainty following the summer rally.
Market analysts anticipate a quick rebound in flows, especially if ETH’s price maintains its strength, which could prompt institutions to reenter the ETF trade sooner rather than later.
Despite the recent turbulence, Ethereum bulls remain optimistic. Tom Lee, the chairman of BitMine, has reiterated his bold prediction that ETH could surge to $60,000 in the long term. According to Lee, the increasing interest in Ethereum from Wall Street could lead to a significant shift akin to the impact of the U.S. abandoning the gold standard in 1971, permanently altering asset demand.
In the meantime, treasury managers continue to accumulate ETH. BitMine alone holds over $8 billion worth of Ether, while corporate treasuries worldwide collectively hold nearly 3% of the total supply. Data from Santiment indicates that whale wallets have increased their holdings by 14% over the past five months, discreetly accumulating during market dips.
Despite short-term outflows, Ethereum remains resilient in its core narrative. With institutional treasuries, whale accumulation, and steadfast long-term predictions, Ethereum continues to attract believers, proving that turbulence is an inherent part of any market rally.
