Ethereum Faces Largest Single-Day ETF Outflow Since Inception, Highlighting Institutional Pessimism

COINOTAG news, September 24, reports from Coindesk reveal that the U.S. Ethereum spot ETF experienced its most significant single-day net outflow since its inception in July, exceeding $79 million on Monday. This substantial outflow underscores waning institutional demand for Ethereum. Grayscale’s ETHE was predominantly affected, while Bitwise’s ETHW saw a modest inflow of $1.3 million. Other products remained static with no inflow or outflow activity. The divergence between ETH price momentum and ETF outflows suggests a prevailing uncertainty among investors about Ethereum’s long-term potential.

Peter Chung, head of research at Presto Labs, highlighted that Ethereum’s “world computer” narrative struggles to resonate with traditional financial (TradFi) investors compared to Bitcoin’s “digital gold” narrative. Augustine Fan, director of SOFA.org, noted that although ETH benefited from the Fed’s dovish stance, the significant ETF outflows reflected fragile market sentiment. Independent market analyst Nick Ruck attributed the recent outflows to a general pessimism surrounding Ethereum’s growth prospects. COINOTAG previously reported a net outflow of $79.21 million on September 23 from the U.S. spot Ethereum ETF.