Spot ether exchange-traded funds (ETFs) are experiencing a continued trend of outflows, marking their fifth consecutive day of withdrawals this week. These outflows amounted to $952 million in total, with $787 million exiting during a four-day period this week alone. This development follows a striking August, where spot ether ETFs brought in a record $3.87 billion, even as bitcoin ETFs faced $751 million in net outflows, as reported by SoSoValue data.
Friday was particularly notable, accounting for the largest single-day decline, with $446.71 million leaving ETH-linked funds. In contrast, spot bitcoin ETFs managed to post net inflows of $246.4 million over the past week, highlighting a stark juxtaposition as these funds had previously seen substantial outflows.
Despite ether’s impressive 16% increase over the past month, it faced a setback of 1.8% in the last week, currently trading just below $4,300. This surge in ether’s value has been partially attributed to the passage of the GENIUS Act, which imposes restrictions on stablecoin issuers regarding interest payments and provides regulatory clarity expected to attract more institutional investment.
The recent pullback in ether’s price may also be connected to a broader market movement back towards risk assets. This shift follows disappointing U.S. job data that has fueled speculation about potential interest rate cuts by the Federal Reserve later this month. Current trader sentiment suggests an 89% probability of a 25 basis points cut and an 11% likelihood of a more substantial 50 basis points reduction, according to the CME’s FedWatch tool. On platforms like Polymarket, expectations for a 50 basis points cut hover around 12%.
The current economic landscape, characterized by mixed data and rising fears of recession, has also impacted other asset classes. Notably, the price of gold has surged past the $3,600 mark for the first time, reflecting the cautious sentiment surrounding economic and geopolitical uncertainties.
