U.S. Spot Ethereum ETFs Experience Largest Daily Outflows Since July with $79 Million Withdrawn

U.S. Spot Ethereum ETFs Experience Largest Daily Outflows Since July with $79 Million Withdrawn

U.S. spot Ethereum exchange-traded funds (ETFs) faced significant outflows on Monday, totaling $79.21 million, marking the highest daily withdrawal since July 29. The majority of this decline was attributed to the Grayscale Ethereum Trust (ETHE), which saw withdrawals of $80.55 million—its largest outflow since July 31, according to data from Sosovalue.

Interestingly, ETHE was the only spot Ethereum ETF to report outflows on that day. In contrast, Bitwise’s ETHW ETF managed to record net inflows of $1.34 million, while the other seven spot Ethereum ETFs experienced no changes in their flow.

Despite the sharp decline in ETHE, the overall trading volume for all nine Ethereum ETFs increased to $167.35 million, up from $139.47 million on the previous Friday. Fidelity’s FBTC ETF led in net inflows with $24.93 million, followed by BlackRock’s IBIT with $11.54 million and Grayscale’s Bitcoin Trust (GBTC) with $8.42 million in inflows. However, GBTC itself recorded a significant $40.33 million in net outflows after two days of inactivity.

Meanwhile, the total trading volume for the 12 spot Bitcoin ETFs fell to $949.72 million on Monday, down from $980.57 million earlier in the week.

Last week marked a reversal in the trend for digital asset investment products, which saw inflows of $436 million after enduring outflows totaling $1.2 billion. This shift was largely influenced by changing market expectations regarding a potential 50-basis-point interest rate cut.

Analysts Predict Strong October for Bitcoin and Ethereum
According to Ryan Lee, Chief Analyst at Bitget Research, both Bitcoin and Ethereum are expected to perform well in October. Following a challenging September, Bitcoin is projected to reach between $58,000 and $72,000, driven by macroeconomic factors, market indicators, and institutional activity.

Lee noted that the Federal Reserve's recent 50-basis-point cut in the federal funds rate, lowering it to 4.75%-5%, signals a formal change in monetary policy intended to inject liquidity into the market. This has already resulted in short-term gains in both the U.S. stock and crypto markets.

He pointed out that Bitcoin now presents a favorable opportunity for accumulation following adjustments in the second and third quarters. September also saw a number of negative funding rates in the Bitcoin futures market due to sell-offs in the spot market that liquidated long futures positions. With the Fear & Greed Index hovering around “Extreme Fear” for much of the month, historical data suggests a rebound is likely after such conditions.

Similarly, an optimistic outlook for Ethereum projects a price range of $2,200 to $3,400. The Federal Reserve's dovish stance on interest rates could make Ethereum an attractive asset for generating yield, especially as its staking yield sits around 3.5%. Additionally, the anticipated launch of Eigenlayer, a significant project within the Ethereum ecosystem, is expected to draw substantial market capital, further enhancing ETH’s performance. The recent rise in popularity of Ethereum-based meme coins, such as Neiro, has also contributed to a wealth effect, encouraging more users to buy ETH and engage in early-stage trading of these assets.