United States spot Ether exchange-traded funds (ETFs) experienced their steepest single-day net outflows on Monday, shedding nearly half a billion dollars.
According to investment firm Farside Investors, Ether ETFs posted $465 million in outflows, surpassing all previous daily records since the funds were introduced.
The mass withdrawal followed an earlier outflow of $152 million on Friday, which ended a strong 20-day streak of consistent inflows.
Investor Caution Following July Surge
The sudden reversal in flows may indicate a broader shift in investor sentiment after a particularly bullish July.
Last month, spot Ether ETFs attracted a record $5.43 billion in net inflows.
However, the pullback came as Ether prices dropped significantly, falling 12% from $3,858 on Thursday to $3,380 on Sunday.
By Tuesday, the token had recovered to $3,629, based on CoinGecko data.
BlackRock’s ETHA Takes the Hardest Hit
Among individual funds, BlackRock’s iShares Ethereum Trust (ETHA) bore the brunt of the outflows.
The fund alone lost nearly $375 million in net assets on Monday.
Despite the setback, ETHA retains a cumulative net inflow of $9.3 billion and total assets of $10.7 billion.
Fidelity’s Ethereum Fund (FETH) also experienced notable outflows, recording $55.11 million in net withdrawals for the day.
FETH currently holds $2.4 billion in assets and has a total net inflow of $2.2 billion since launch.
Grayscale Products Also See Withdrawals
Grayscale’s Ether-focused products were not spared.
The Grayscale Ethereum Mini Trust saw a net outflow of $28 million, while the Grayscale Ethereum Trust (ETHE) recorded $6.9 million in outflows.
Grayscale’s ETHE fund, which has been under pressure for months, now has a cumulative net outflow of $4.3 billion and net assets of $4.1 billion.
Meanwhile, the Ethereum Mini Trust maintains $2.3 billion in assets and a $1.1 billion net inflow.
Institutional Demand Remains Resilient
Despite ETF withdrawals, blockchain activity indicates continued institutional interest in ETH.
On Tuesday, blockchain analytics platform Lookonchain reported that three wallets—believed to be controlled by institutional players or whales—acquired a total of 63,837 ETH, valued at approximately $236 million.
These purchases were reportedly made through over-the-counter transactions facilitated by FalconX and Galaxy Digital.
Since July 9, Lookonchain has identified 14 new wallets collectively accumulating over 856,000 ETH—worth more than $3.1 billion.
Market Watching for Trend Reversal
The divergence between ETF flows and institutional activity highlights a mixed outlook for Ether in the near term.
Retail-driven ETF outflows suggest caution, while large-scale OTC purchases signal that sophisticated investors may be positioning for a longer-term play.
How the market interprets these conflicting signals could influence Ether’s price trajectory and ETF sentiment heading into the final months of the year.
