Spot Ethereum ETFs Bleed $800M in Single Week - Worst Performance Since Launch

Ethereum ETFs hit brutal turbulence as investors flee en masse

The Exodus Accelerates

Spot Ethereum exchange-traded funds just recorded their ugliest week since hitting the market, hemorrhaging a staggering $800 million in outflows. The massive capital flight signals growing investor skepticism despite Ethereum's fundamental strengths.

Institutional Cold Feet

Wall Street's latest crypto darling faces its first major test of confidence. The bleeding suggests traditional finance might be getting cold feet about crypto's second-largest asset - or maybe they just remembered it's not a meme stock.

Market Reality Check

While the numbers look grim, seasoned crypto veterans see this as typical market volatility. The real question isn't whether Ethereum will survive - it's whether traditional investors have the stomach for crypto's rollercoaster ride.

Fidelity’s FETH Leads $800M Ethereum ETF Exodus

The heaviest withdrawals hit BlackRock’s flagship ETHA fund and Fidelity’s FETH.

ETHA, the largest Ethereum ETF by assets under management, lost over $200 million but still retains more than $15.2 billion in total assets.

Meanwhile, FETH saw more than $362 million in outflows, leading the weekly slide.

ETH prices briefly fell below $4,000 on Thursday and Friday, sparking two consecutive days of $250 million in redemptions from Ethereum funds, the worst 48-hour span since mid-August.

Analysts attributed the sharp drop to a mix of technical pressure, broader economic uncertainty, and Leveraged positions being liquidated.

Ethereum has since recovered slightly and was trading NEAR $4,020 as of Saturday.

During the trading week of September 22 to 26 (ET), Bitcoin spot ETFs saw net outflows of $903 million, ending a four-week streak of inflows. Ethereum spot ETFs recorded net outflows of $796 million, with all nine funds posting redemptions.https://t.co/YcNXWVZGwE pic.twitter.com/Mgwh2QKKtr

Bitcoin ETFs also posted major outflows for the same week, with a total of $902.5 million leaving the funds. Friday alone saw $418.3 million in withdrawals, the highest single-day number in more than a month.

As with Ethereum, BlackRock’s IBIT fund weathered the storm better than rivals. IBIT lost just $37.3 million on Friday, while Fidelity’s FBTC saw over $300 million pulled in a single day.

Despite the recent volatility, BlackRock’s bitcoin product continues to grow its dominance.

Data indicates that IBIT has held as much as 80% of the market share among spot Bitcoin ETFs. However, unlike several competitors, BlackRock has yet to file for a spot solana ETF.

Solana ETF Filings Signal Institutional Momentum

Several top asset managers, including Fidelity, Franklin Templeton, and Bitwise, have submitted updated S-1 filings for spot Solana ETFs, some with staking features.

ETF analyst Nate Geraci expects the US SEC could approve them by mid-October, calling it a pivotal month for digital asset products.

The filings follow the recent launch of the REX-Osprey Solana Staking ETF on the Cboe BZX Exchange, which drew $12 million in first-day inflows.

Analysts say Solana is quickly becoming the next altcoin favored by institutions, with strong inflows also reported in Europe-based Solana ETPs.

Geraci and others believe the inclusion of staking language in these filings could pave the way for long-awaited spot Ethereum ETFs with staking capabilities.

Meanwhile, Bitcoin exchange-traded products now hold over 1.47 million BTC, representing around 7% of the total supply, with U.S.-based ETFs dominating the landscape.

BlackRock’s IBIT leads with 746,810 BTC, followed by Fidelity’s FBTC at nearly 199,500 BTC, according to data from HODL15Capital.