Significant outflows from Ethereum ETFs are putting pressure on the price of Ether, raising risks for investors.
Outflows from Ethereum ETFs
According to data from SoSoValue, spot Ether ETFs experienced $196.7 million in outflows, marking the second-worst figure since their inception. Combined with $59 million in redemptions on Friday, the two-day total amounts to $256 million. BlackRock’s iShares Ethereum Trust and Fidelity’s FETH were the hardest hit, losing $87 million and $79 million respectively.
Pressure on Ethereum Price
ETH has dropped more than 6.5%, trading around $4,299 at the time of writing. The staking withdrawal queue has surged to an all-time high, with over 910,000 ETH worth approximately $3.9 billion awaiting withdrawal. This has raised concerns about increasing sell-side pressure on the market.
Market Reactions and Risks
The spike in pending withdrawals has triggered warnings of a possible 'unstaking.' Bitcoin advocate Samson Mow noted that while the long-discussed 'flippening' between ETH and BTC might be unlikely, the surge in unstaking could push ETH’s value lower against Bitcoin, potentially revisiting 0.03 BTC.
Despite the turmoil, Ethereum ETFs have recently been outpacing Bitcoin ETFs in inflows, indicating ETH’s growing importance in institutional portfolios.
