US spot Ether ETFs recorded a significant daily outflow totaling $465 million, marking the largest single-day withdrawal since their launch. Leading the redemptions was BlackRock’s iShares Ethereum Trust (ETHA), which saw net outflows approaching $375 million. This positions BlackRock as the primary contributor to the day’s outflow activity despite ETHA maintaining cumulative net inflows of $9.3 billion since inception.
Conversely, institutional appetite for Ethereum remains robust. Large investors, commonly referred to as whales, acquired more than 63,000 ETH through over-the-counter (OTC) deals on the same day. Furthermore, 14 new investor wallets accumulated 856,554 ETH, valued at over $3.1 billion, since July 9th, indicating significant ongoing accumulation outside the ETF structure.
The substantial outflow follows a strong period of inflows into the new products, which saw 20 consecutive days of positive inflows amassing $5.43 billion through July. This outflow coincided with a decline in Ether’s market price, which dropped to $3,380 – a decrease of approximately 12% from the prior Thursday’s level of $3,858.
Outflows were not limited to BlackRock’s ETF. The Fidelity Ethereum Fund experienced $55.11 million in outflows, while Grayscale reported outflows of $28 million for its Ethereum Mini Trust and $6.9 million for its Ethereum Trust.
Despite the short-term retreat in spot ETF holdings, the evidence of significant institutional buying via OTC and direct wallet accumulations suggests sustained confidence in Ether’s long-term value proposition. This underlying demand could provide a stabilizing force for the market even amid ETF volatility.