Ethereum ETF Outflows Hit Largest Mark Since September
Sharp Ethereum ETF Outflows Follow Trade Policy Shift
U.S. spot Ethereum exchange-traded funds (ETFs) experienced the largest single-day outflows since September, as $428.5 million exited the funds on Monday, according to reporting via Decrypt. BlackRock’s ETHA recorded the most significant withdrawal, losing $310.1 million. Other notable movements included Grayscale’s ETHE with $21 million in outflows and Fidelity’s FETH which saw $19.1 million leave, based on Farside Investors data.
Background: Recent Trends in Ethereum ETF Flows
The substantial Ethereum ETF outflows followed a period of strong investor interest. During the previous week, Ethereum ETFs attracted $488 million in net inflows. This contributed to a broader $3.17 billion influx into both Bitcoin and Ethereum funds, helping drive year-to-date crypto product deposits to a record $48.7 billion, as reported by CoinShares and shared with Decrypt.
The reversal came after former President Donald Trump announced a 100% tariff on Chinese imports on Friday. This move reportedly precipitated the largest liquidation event in cryptocurrency markets to date, erasing between $19 billion and $30 billion in leveraged positions within a 24-hour period.
According to Illia Otychenko, Lead Analyst at CEX.IO, “Monday’s outflows are the aftershocks from Friday’s tariff-driven selloff” (via Decrypt). Market participants appeared to shift to a defensive stance, opting to wait for more stable macroeconomic signals prior to re-entering the market.
Market Reaction and Analyst Perspectives on Ethereum ETF Outflows
Despite the negative momentum, some analysts see the Ethereum ETF outflows as a short-term response rather than a sign of fundamental weakness. Bitnunix analyst Dean Chen explained, “institutional positioning remains intact” following the recent inflows. He added that the Monday withdrawals were a “stress response” to sudden macro changes and emphasized that only sustained outflows could indicate a deeper repositioning.
Markets appeared to stabilize over the weekend, after Trump introduced a more conciliatory tone regarding trade relations. In parallel, Ethereum’s price fluctuated in the $3,900-$4,200 range and dropped by 3.4% in the last 24 hours, as per CoinGecko data.
Outlook: Factors Supporting Ethereum’s Position
Analysts point out that Ethereum maintains “relatively strong” fundamentals. Otychenko noted the lowest leverage ratio since May and highlighted technical indicators signaling a potential recovery. “Ether registered bullish divergences on the daily RSI and MACD, signaling that buying momentum is starting to increase after the recent selloff,” he stated, suggesting this could lend short-term support.
On the prediction markets platform Myriad, developed by Decrypt’s parent company DASTAN, users assigned just an 8% chance that the Crypto Fear and Greed Index would reach ‘Greed’ levels by Wednesday. Many market participants remain cautious in light of recent volatility, looking to future sessions for a clearer trend.
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