The US spot Ethereum ETF market is witnessing a significant shift as it records a net outflow for the fourth consecutive trading day. On Thursday alone, the market saw outflows totaling $167.41 million, which had an impact on Ethereum’s price, closing at $4,275.
Fidelity’s FETH emerged as the primary contributor to the outflows, experiencing a staggering $216.68 million in capital exiting the fund. Meanwhile, Bitwise’s ETHW recorded a notable net outflow of $45.66 million. In contrast, BlackRock’s ETHA was the only fund that demonstrated resilience, experiencing a net inflow of $148.8 million.
This ongoing trend can be traced back to August 29, when the market first started to see significant outflows, beginning with $164.64 million, followed by $135.37 million on September 2, and $38.24 million on September 3.
Despite the turbulent atmosphere surrounding the Ethereum spot ETFs, Digital Asset Treasury (DAT) companies continue to show robust buying activity. These institutional players have been vital in driving Ethereum’s price up by more than 2.5 times its previous low over the past five months. Bitmine, noted for holding substantial ETH reserves, purchased 78,000 ETH on August 28 and added another 74,300 on Tuesday. Other players like SharpLink Gaming and The Ether Machine have also made considerable purchases, acquiring 39,000 ETH and 150,000 ETH, respectively.
Although institutional buying remains strong, the recent outflows from spot ETFs have correlated with a 1.4% decline in ETH’s price, indicating that the ETF dynamics are influencing short-term investor sentiment. This situation has created a stalemate in the market, which has otherwise enjoyed a strong rally over the previous months.
Looking ahead, the market eagerly anticipates Friday’s US Non-Farm Payroll (NFP) report. Analysts speculate that if the NFP figures fall below expectations, it could reignite hopes for consecutive interest rate cuts from the Federal Reserve. Investors are keen to see whether this macroeconomic signal can reverse the outflow trend and revive the fortunes of the Ethereum spot ETF market.
