Ethereum ETFs See First Weekly Outflows in 3 Months - What’s Next?

Ethereum ETFs just hit a sobering milestone—breaking their 12-week inflow streak with unexpected outflows.

The three-month rally hits a wall

After 90 straight days of bullish momentum, investors finally pulled back. The numbers don't lie: outflows hit for the first time since May, signaling potential profit-taking or sector rotation.

What's driving the shift?

Market sentiment appears to be cooling as traders lock in gains. Some analysts point to broader crypto volatility, while others whisper about institutional hesitation—because nothing says 'confidence' like pulling money out right before potential regulatory clarity drops.

Watch the charts, not the headlines

This isn't necessarily a bear signal. Healthy markets breathe—inflows and outflows create balance. But it's a stark reminder: even the hottest trades cool down. Maybe those Wall Street suits finally remembered that crypto doesn't care about their quarterly reports.

Ethereum ETFs Suffer Rare Setback of $241 Million Outflow

The week began with heavy selling pressure, with the nine funds registering a combined $866.4 million outflow between Monday and Wednesday.

Notably, Tuesday alone accounted for $429 million in redemptions, the second-largest daily outflow since the products went live.

By Thursday, however, sentiment began to shift. The funds recorded two consecutive days of inflows totaling $625.3 million.

While this reversal reduced the scale of the withdrawals, it was not enough to erase the earlier damage. The result was a net weekly outflow of roughly $241 million.

This shift tracked broader macro signals and Ethereum’s market moves. The early-week selloff stemmed from concerns about US inflation data, which heightened speculation over the Federal Reserve’s next policy decision and triggered expectations of a short-term price correction in ETH.

Later in the week, Fed Chair Jerome Powell delivered a more dovish message, calming fears of prolonged tightening. ethereum responded with a rally to a fresh all-time high, which in turn spurred the late-week inflows.

Despite the setback, Ethereum ETFs continue to show stronger relative performance compared with their Bitcoin counterparts.

Last week, Bitcoin ETFs saw more than $1.1 billion in outflows, underlining the diverging investor appetite for the two leading crypto products.

Nate Geraci, president of investment advisory firm The ETF Store, pointed to the broader trend.

Since the start of August, spot Ethereum ETFs have attracted $2.8 billion in inflows, while spot bitcoin ETFs have registered $1.2 billion in outflows. Looking back to July, Ethereum has pulled in $8.2 billion, compared with $4.8 billion for Bitcoin.

This pattern reflects a notable shift in institutional positioning. Investors appear increasingly willing to rotate into Ethereum products, even as broader market volatility continues to influence weekly flows.