Ethereum ETFs outflows deepen as ETH hovers retests $4300

Ethereum-focused exchange-traded funds have shifted from gains to losses as the price of ETH pulls back.

On Aug. 18, Ethereum ETFs recorded outflows reaching $196.6 million, according to data from SoSoValue. This marked the second consecutive day of losses for the funds, following the $59 million recorded just days ago.

Leading the outflows was BlackRock, accounting for the largest share at $87 million, followed by Fidelity at $78.4 million. Grayscale’s withdrawals were smaller at $18 million, while VanEck, Franklin Templeton, and Bitwise each recorded more modest outflows under $10 million.

The latest dip ends last week’s eight-day streak of inflows, which coincided with Ethereum’s climb to multi-month highs above $4,700 and renewed institutional interest. That week was one of the funds’ best since their debut, including a record single-day inflow of over $1 billion.

ETH’s rally, however, was short-lived, as the asset quickly surrendered its gains, cooling the demand. At the time of writing, Ethereum trades at $4,226, down 0.92% over the past 24 hours. Its weekly performance has also turned negative, sliding 1.5%, though monthly gains remain strong at 14%.

The ongoing ETF outflows are likely driven by profit-taking efforts among investors, likely to capitalize on the gains realized following the recent price performance. Meanwhile, Bitcoin ETFs are on a similar two-day losing trend, shedding roughly $136 million.

But even with recent underperformance, Ethereum ETFs are not slowing down on ETH accumulation.

Ethereum ETFs now hold 5% of ETH supply 

Current market data shows that these exchange-traded funds now hold around 6.5 million ETH in assets under management, worth roughly $27.7 billion at current prices. This represents 5.34% of Ethereum’s current supply and marks a significant jump from their $10 billion level just two months ago.

Issuers like BlackRock have been on a quiet accumulation streak for months, building up their stacks as overall demand improves. Arkham Intelligence data shows BlackRock’s ETH holdings at 3.38 million at press time, valued slightly under $14.3 billion. This places ETH as the second-largest asset in its portfolio and reflects a 190% jump from its holdings at the start of the year, which were around 1.1 million ETH.

The growing accumulation coincides with a separate trend among corporate entities, which are now estimated to hold a combined 2.2% of ETH’s supply, worth over $10.2 billion. Together, these flows are strengthening Ethereum’s long-term outlook, with expectations high for continued accumulation and potential price gains.

Echoing the optimism, Standard Chartered recently updated its year-end price target for ETH to $7,500, citing spot ETFs and growing corporate interest as key catalysts for the next leg up.