Ethereum exchange-traded funds (ETFs) registered record single-day outflows surpassing $500 million, indicating a sharp reversal in institutional capital flows. This occurred alongside a $10 billion collapse in Ethereum Open Interest over ten days, reflecting extensive market de-risking amid growing volatility.
Institutional activity displayed diverging strategies during this turbulence. BlackRock executed a strategic Ethereum purchase of 23,000 ETH (valued at $88 million), signaling long-term positioning. Conversely, Fidelity transferred 14,978 ETH ($53.6 million) to Coinbase Prime, likely taking profits as overall market sentiment shifted toward risk aversion.
Technical factors compound negative pressure, with approximately $60 million in liquidation liquidity clustered near the $3,500 ETH price level. This concentration risks triggering accelerated sell-offs if the critical support threshold is breached.