The U.S. Spot Ethereum exchange-traded fund recorded its seventh consecutive day of outflows, with more than $390 million leaving the fund.
10th according to SoSoValue data $ETH ETFs recorded net outflows of $92.54 million on Thursday, March 26, with BlackRock’s ETHA primarily leading the way with $140.24 million in outflows. The Ethereum ETF (ETHB), sponsored by the investment management company, managed to offset most of the outflows, raising $96.81 million on the day.
Following yesterday’s outflow, these investment products were redeemed for seven consecutive days, totaling $391.65 million in outflows.
Prior to this streak, the ETF had six-day inflows of more than $386 million. This suggests that risk assets may be destabilizing as institutional investors withdraw from the market as the conflict between the US and Iran is expected to prolong.
Some of this activity could come from BlackRock’s capital rotation into ETHB, which offers investors a native staking yield, unlike standard spot ETFs that simply track the price of the underlying assets. The company previously announced it would waive some sponsorship fees to remain competitive with its initial $2.5 billion in assets.
In addition to this, investors are moving money away from these ETFs and into traditional safe-haven assets such as gold and other precious metals as oil prices continue to maintain upward pressure, raising concerns about global inflation and a hawkish Federal Reserve.
On a monthly basis, $ETH The ETF is nearly complete with a five-month streak of net outflows that began last November, with total outflows of nearly $2.85 billion.
Ethereum’s price has fallen more than 45% to $1,815 from its year-to-date high in late February, amid a broader market downturn triggered by persistent ETF outflows, the U.S.-Iran war, rising energy costs and waning expectations for interest rate cuts this year by the U.S. Federal Reserve. At the time of writing, Ethereum price is trading at $2,065, down 2.7% in the past 24 hours.
Market analysts such as Tom Lee, head of research at Fundstrat and chairman of Ethereum finance company Bitmine, say the Ethereum market is at the bottom, consistent with the company aggressively accumulating ether towards its goal of 5% of total circulating supply.
This comes as Ethereum balances on exchanges have fallen to an all-time low, a sign of accumulation by either individual investors or large institutional investors such as Bitcoin, likely positioning it at much higher prices.
