Spot Ether ETFs Post $952M Outflows as Risk-Off Sentiment Builds
Spot ether exchange-traded funds (ETFs) recorded their fifth consecutive day of redemptions this week, with investors pulling a combined $952 million, including $787 million during the shortened four-day trading week, SoSoValue data shows.
The heaviest withdrawals came Friday, when $446.7 million exited ETH-linked funds. The shift follows a record-setting August in which ether ETFs drew $3.87 billion in inflows, while bitcoin products shed $751 million. By contrast, spot bitcoin ETFs saw a turnaround last week, bringing in $246.4 million.
Ether itself remains higher on a monthly basis, advancing more than 16% on the back of optimism tied to the passage of the GENIUS Act. The legislation restricts stablecoin issuers from paying interest and provides regulatory clarity that could attract institutional adoption. Still, ETH slipped 1.8% over the past week, now trading just below $4,300.
The latest downturn comes amid a broader retreat from risk assets following weaker U.S. labor data. Traders increasingly expect the Federal Reserve to cut rates later this month, with CME’s FedWatch tool pricing an 89% chance of a 25-basis-point reduction and an 11% probability of a 50-basis-point cut. On prediction market Polymarket, odds of the larger move stand at 12%.
Uncertainty has also fueled safe-haven demand, sending gold to a record high above $3,600 per ounce.
