Ethereum is in the spotlight lately, not only for its price fluctuations but also because of increased network activity that has captured the interest of investors. In a surprising turn of events, spot Ethereum funds faced a notable downturn last week, recording their most substantial weekly outflows to date. According to data, the week ending September 26th saw these funds facing outflows of $795.6 million, with trading volume surpassing $10 billion.
The ETFs have marginally exceeded the notable week of September 5th, when $787.7 million exited the funds. BlackRock’s industry-leading ETHA fund saw an outflow exceeding $200 million, yet it continues to oversee more than $15.2 billion in assets. In the latest developments, the Fidelity Ethereum Fund, recognized as the third-largest Ethereum ETF by assets under management, faced significant outflows, witnessing over $362 million withdrawn during the same timeframe.
Grayscale’s fund has also seen significant withdrawals, underscoring a wider trend of investor caution within the Ethereum market. The outflows occurred as Ethereum’s price dipped below the $4,000 threshold, currently trading at $3,990.17, reflecting a decline of 0.58% for the day and 10.78% over the past week. The retreat in fund flows mirrors the prevailing market sentiment, with investors appearing to pull back in response to short-term volatility. In the latest weekly report, Bitcoin ETFs experienced outflows amounting to $902.5 million, with Fidelity at the forefront of these withdrawals. Bitcoin was priced at $109,352.01, reflecting a minor daily drop of 0.02% and a weekly decline of 5.53%. The SEC’s decision to postpone rulings on several crypto exchange-traded fund and staking applications has led to a shift in review deadlines, now extending into late October and mid-November.
Notable issuers, including a prominent investment management firm, a well-known asset management company, a leading financial services corporation, a cryptocurrency investment firm, and a digital asset management company, are among those affected. Despite the ongoing delays, there is a palpable sense of optimism in the market. Ripple Futures have surged to record highs, and new filings are making waves, including VanEck’s proposed Spot Hyperliquid ETF and the inaugural U.S.-based Dogecoin ETF.