Ethereum ETFs Experience $60.47 Million in Outflows Amid Market Decline
December 19 marked a significant downturn in the US spot Ethereum exchange-traded funds (ETFs) market, with total net outflows reaching $60.47 million, ending an 18-day streak of positive inflows.
The Grayscale Ethereum Trust (ETHE) was the primary contributor to this trend, with outflows of $58.13 million. Other notable ETFs, including Bitwise Ethereum ETF (ETHW), Invesco, and Grayscale's mini ETFs, experienced smaller outflows totaling $12.28 million.
In contrast, BlackRock’s ETHA, with net assets of $3.45 billion, reported zero flows on that day. Franklin’s EZET and 21Shares’ CETH remained unchanged. Fidelity’s FETH and VanEck’s ETHV were exceptions, collectively securing $10 million in net positive inflows.
Despite this recent decline, spot Ether ETFs have accumulated $2.4 billion in net positive flows since their launch in July. These funds gained traction following a rise in Ethereum prices and political developments in the US. Over the past 18 days, inflows totaled $1.27 billion as Ether surged from $3,500 to surpass the $4,000 resistance level. Notably, during this peak, the Ethereum Foundation sold 100 ETH.
Ethereum (ETH) Price Drop
The outflows coincided with a broader cryptocurrency market decline. The Federal Reserve's third consecutive interest rate cut in 2024 sparked inflation concerns. Fed Chairman Jerome Powell announced further rate cuts in 2025 aimed at dollar stabilization, leading to a sell-off in risk assets and a drop in the global crypto market cap from $3.7 trillion to $3.36 trillion.
Ether's price fell over 9% within 24 hours to $3,371, while its market cap decreased by 8.89% to $404 billion. ETH’s Relative Strength Index (RSI) currently indicates a bearish outlook, with a reading of 40 reflecting significant downward pressure.
Data from IntoTheBlock shows that 81% of ETH holders remain profitable at current prices, while 16% are experiencing losses and 3% are at breakeven.
The crypto fear and greed index remained steady at 74, indicating ongoing greed in the market. This suggests that investors view the dip as a buying opportunity, fostering hopes for a rebound as the holiday season approaches.
On December 19, US spot Bitcoin ETFs faced their largest single-day outflows, totaling $680 million and ending a 15-day streak of positive flows. Bitcoin is currently trading around $96,600, down by 5% in the past day.