Sustained Withdrawals Raise Concerns
Spot Ethereum exchange-traded funds (ETFs) have experienced their most significant setback to date, with over $1.04 billion in outflows across six consecutive trading sessions, according to SoSoValue.
The pullback represents a sharp reversal for Ethereum products, which only weeks earlier dominated inflows. The shift has raised questions about whether investor confidence in ETH is weakening or if the move reflects a temporary rotation into Bitcoin.
Assets Under Management Fall
Ethereum ETF assets under management have dropped to $27.39 billion, equal to about 5.28% of ETH’s market cap. Daily trading volumes remain high at $1.52 billion, but the flows show a clear tilt away from Ethereum.
On Monday alone, Ether funds shed $96.7 million. BlackRock’s ETHA accounted for the largest portion of redemptions at $192.7 million, partially balanced by inflows into Fidelity’s FETH ($75 million), Grayscale’s ETHE ($9.5 million), and its Mini Trust ($11 million).
The broader streak began with a single-day outflow of $446.7 million on Friday and included further heavy redemptions through September 4.
Bitcoin ETFs Attract New Inflows
While Ethereum products struggle, Bitcoin ETFs have moved in the opposite direction. On September 8 alone, they recorded $368.2 million in inflows, led by Fidelity’s FBTC with $156.5 million.
Other top performers included Ark Invest and 21Shares’ ARKB with $89.4 million. Cumulatively, Bitcoin ETFs now hold $145.4 billion, representing 6.52% of BTC’s market cap. Since launch, they have attracted nearly $55 billion in total inflows.
The divergence is notable given that Ethereum outpaced Bitcoin in the summer months, attracting $9.5 billion across July and August, compared with $5.4 billion for Bitcoin.
Seasonal Weakness and Market Sentiment
Ethereum ETFs logged record gains in July, with inflows of $5.4 billion, and added another $4 billion in August. But momentum turned at the end of that month, when products recorded a sharp $164.6 million outflow on August 29, ending a five-day run of inflows worth $1.5 billion.
The timing has fueled speculation that Ethereum may be facing its typical September weakness. In September 2024, ETH funds recorded $46.5 million in net outflows, while Bitcoin ETFs added $1.26 billion.
Ethereum Price and Technical Setup
ETH began September at $4,302, down from its August peak of $4,953. As of September 9, it trades at $4,290.81, marking a 3.8% decline over two weeks.
Analysts note ETH broke out of a descending triangle at $4,356, creating short-term targets of $4,500 and possibly $4,956 if momentum builds. Support remains firm at $4,200.
Ethereum is heating up.
At $4,356, $ETH has broken out of its 4H descending triangle. The spotlight now shifts to $4,500, clearing it could unlock momentum toward $4,956.
Strong support remains at $4,200, keeping the bullish setup alive.
Momentum is building, and the chart… pic.twitter.com/Uaqry1tAUH
— Iko | Web3 🇳🇱 🇦🇪 (@IkoWEB3) September 9, 2025
However, fundamentals are less supportive. Ethereum’s on-chain revenue fell 44% in August to $14.1 million, while network fees dropped 20% to $39.7 million. The reduction followed the Dencun upgrade, which lowered costs for layer-2 rollups but cut fee income for validators.
Institutional Developments
Despite outflows, institutional interest in Ethereum continues. Etherealize, a firm backed by Vitalik Buterin, raised $40 million in September to expand tokenized asset infrastructure. Stablecoin supply on Ethereum also climbed to a record $165 billion, up $5 billion in one week.
Sentiment across the wider crypto market remains cautious. The Fear & Greed Index dipped to 44 (“Fear”), with traders shifting toward major assets such as Bitcoin, Ethereum, and XRP.
