Ethereum ETFs Bleed Out: US Funds See $196.6M Exodus—Second-Worst Day on Record

Wall Street's crypto darling isn't looking so hot today.

US Ethereum ETF holders just yanked $196.6 million in a single trading session—the second-largest daily withdrawal since these funds launched. That's enough capital to buy 64,000 ETH at current prices... if anyone wanted to.

What's driving the dash for cash?

Traders appear to be rotating out of crypto derivatives as regulatory uncertainty looms. The SEC's recent enforcement blitz has institutional players spooked—never mind that Ethereum's network activity just hit an all-time high.

The irony?

These same funds saw record inflows just three months ago when ETH briefly flirted with $5,000. Now? A classic case of 'buy high, panic low'—the institutional investor special.

One thing's certain: when the suits start fleeing, the degens usually get a bargain. Your move, diamond hands.

Meanwhile, other issuers also recorded outflows, though on a smaller scale.

Grayscale’s Ethereum fund lost $18.7 million, Franklin Templeton’s EZET shed $6.6 million, VanEck’s ETHV saw $4.8 million in withdrawals, and Bitwise’s ETHW dropped by about $1 million.

The setback comes after an eight-day inflow streak during which investors added more than $3.7 billion to Ethereum ETFs.

However, despite the latest reversal, overall market momentum remains firmly positive.

According to SoSoValue data, cumulative net inflows into US Ethereum ETFs now exceed $12 billion, most of which have arrived over the past two months as institutional adoption has accelerated.

Together, the funds hold about $27.7 billion in assets under management, representing 5.34% of Ethereum’s total market capitalization.