Ethereum ETFs Suffer Second-Largest Daily Withdrawal Since Launch

On September 5, Ethereum-linked exchange-traded funds (ETFs) in the United States saw a wave of redemptions, with investors pulling more than $444 million.

The sell-off marked the second-largest outflow since the funds launched in July 2024. It signaled a sharp reversal in investor appetite for ETH exposure.

ETH Funds Log Sharpest Weekly Decline Since Launch

According to SoSo Value data, BlackRock’s ETHA led the withdrawals, shedding $307.68 million, which represents nearly 70% of the day’s total.

Grayscale’s two funds followed with cumulative outflows of over $80 million, while Fidelity’s FETH shed $37.77 million. 21Shares’ CETH also posted $14.68 million in withdrawals.

As a result, the September 5 redemptions extended a five-day run of capital exits that began on August 29.

Over that period, Ethereum ETFs collectively lost more than $952 million, marking the nine funds’ largest weekly outflow since their launch.

Market analysts pointed out that the outflows are a mix of profit-taking and caution in response to heightened price swings across crypto markets.

Meanwhile, Ethereum’s derivatives market is also showing signs of stress, extending the pressure beyond ETFs.

CryptoQuant analyst JA Maarturn said sellers in ETH futures outweighed buyers by $570 million, pushing net taker volume sharply toward the sell side.

Historically, such heavy selling often emerges near local market tops, reinforcing the view that traders are hedging against further downside.

However, Ethereum’s long-term narrative remains intact among its strongest advocates despite the short-term turbulence.

Ethereum co-founder Joseph Lubin recently reiterated that ETH’s potential extends far beyond current valuations. He predicted that the asset could multiply by 100 times and eventually flip “the Bitcoin/BTC monetary base.”

Lubin said Wall Street institutions will eventually integrate Ethereum into core operations, staking, and running validators to replace legacy systems.

According to him, JPMorgan’s early experimentation with Ethereum technology shows that large banks already have exposure to blockchain infrastructure. This background positions them to adapt more easily once decentralized rails become the industry standard.