Ethereum ETF outflows
YEREVAN (CoinChapter.com) — On Oct. 1, the Fidelity Ethereum Fund (FETH) experienced its largest outflow since its launch, with $25 million withdrawn and, thus, marking the highest daily outflow among U.S.-based spot Ether ETFs, excluding the Grayscale Ethereum Trust (ETHE).
Ethereum ETF Flow Breakdown. Source: Farside Investors
The total outflow from U.S.-based spot Ether ETFs reached $48.6 million on Oct. 1, with nine issuers impacted. Leading the outflows was Grayscale’s ETHE at $26.6 million, followed by Fidelity’s FETH with $25 million. The Bitwise Ethereum ETF (ETHW) also recorded $0.9 million in outflows.
However, not all Ether ETFs were affected negatively. 21Shares’ Core Ethereum ETF (CETH) reported $1.2 million in inflows, while VanEck Ethereum ETF (ETHV) saw a positive inflow of $2.7 million. The remaining Ether ETFs had no changes in their positions.
Fidelity’s Ethereum Fund Faces Pressure Amid Record Outflows
Even with the record outflow of $25 million, Fidelity’s FETH maintains its position as the second-largest spot Ether ETF in the U.S., with $453.5 million in total investments. The largest player remains Grayscale’s ETHE, despite ongoing outflows, which are nearing $3 billion.
BlackRock’s iShares Ethereum Trust (ETHA) continues to hold the largest investment share, with over $1.14 billion in assets as of October 1.
Ethereum ETF Flow Overview as of October 2024. Source: Farside Investors Bitcoin ETFs Follow Ether’s Outflow Trend
On Oct. 1, the Bitcoin ETF market mirrored the outflow pattern seen in Ether ETFs, recording $242.6 million in total withdrawals. The largest outflow was from Fidelity’s Wise Origin Bitcoin Fund (FBTC), which saw $144.7 million withdrawn. ARK 21Shares Bitcoin ETF (ARKB) recorded $84.3 million in outflows.
Bitcoin ETF Flow Data – October 2024. Source: Farside Investors
Bitcoin prices also dropped nearly $4,000 following a missile attack in Iran on Oct.1, before rebounding to $61,750 by the time of publication.
Investors Step Back from Ethereum ETFs Amid Uncertainty and Solana’s Rise
Despite positive market factors like potential rate cuts, investors are stepping away from Ethereum ETFs for several reasons.
Geopolitical uncertainty, particularly following the missile attack in Iran, has driven many investors toward safer assets. In such volatile conditions, reducing risk exposure becomes a priority, leading to lower interest in cryptocurrencies, including Ethereum.
Furthermore, Bitcoin continues to dominate the ETF market. Its longer track record and perceived stability make it a more attractive option for many investors, diverting attention from Ethereum ETFs.
Adding to the pressure, Solana is gaining ground and taking some of Ethereum’s market share. Solana’s market cap is nearing half of Ethereum’s, currently at $67 billion, as it attracts more interest from the crypto community. As Solana grows, more investors diversify their holdings into other smart contract platforms, further decreasing demand for Ethereum-based products.
Solana Market Data. Source: CoinMarketCap
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