Spot ether exchange-traded funds (ETFs) posted a fifth straight day of outflows this week, shedding a total of $952 million and losing more than $787 million during the shortened four‑day trading week. The latest withdrawals were capped by a heavy exit on Friday.
That followed a record month: in August, spot ether ETFs pulled in $3.87 billion, even as spot bitcoin funds experienced roughly $751 million in net outflows, according to SoSoValue data. The contrast underscores how quickly institutional flows into crypto can rotate.
Friday accounted for the steepest single‑day decline, with about $446.7 million leaving ETH-linked funds. By comparison, spot bitcoin ETFs recorded roughly $246.4 million in net inflows during the same week after sizable outflows the prior month.
Despite the short-term withdrawals, ether is up more than 16% over the past month. The token slipped about 1.8% in the last week and is trading just below $4,300. Market participants point to the passage of the GENIUS Act as a key supportive catalyst: the law curbed stablecoin issuers’ ability to pay interest and clarified parts of the regulatory framework, developments that could encourage greater institutional participation in ETH products.
The more recent pullback appears tied to a broader rotation in risk assets after softer U.S. jobs data pushed investors to price in Fed easing. The CME FedWatch tool shows roughly an 89% chance of a 25-basis-point cut and an 11% chance of a 50-basis-point cut; prediction markets such as Polymarket place the odds of a 50 bps cut near 12%.
Safe-haven demand also rose: gold topped the $3,600 an ounce mark for the first time, highlighting macro uncertainty that can both lift havens and change flows into risk assets like crypto.
What this means: ETF flows can be volatile and often reflect headline-driven reallocations more than long-term conviction. The GENIUS Act and clearer rules may support institutional adoption over time, but policy moves and macro data will continue to drive short-term swings. Volatility remains high, and readers should treat these developments as market signals, not investment advice.
Source: CoinDesk. Read the original coverage for full details.