Record outflows from Ethereum ETFs: $197M in 24 hours shake the market

The ETF on Ethereum recorded 197 million dollars in outflows, the second worst figure ever after August 4th. The market assesses the impact of large-scale unstaking and new lows for the price.

Why did such a massive outflow of Ethereum ETFs occur?

During yesterday, the Spot ETFs on Ethereum recorded outflows amounting to 197 million dollars. This figure represents the second highest value since these instruments were launched. The sell-off trend gained momentum already the previous week, with 59 million dollars in outflows on Friday, bringing the negative balance of the last two days to 256 million.

This bearish pressure fits into an already ongoing dynamic. In fact, although on August 4th the inflow had reached 465 million dollars, the sharp reversal is alarming many investors who are beginning to question the short-term prospects for ETH and related financial products.

Which ETF issuers have been most affected?

Farside data reveals that in the spotlight of outflows, between Monday and Friday, BlackRock and Fidelity stand out in particular:

• BlackRock: 87 million dollars out on Monday
• Fidelity: 79 million dollars on the same day
• Fidelity had experienced just on Friday an outflow of 272 million from its Ethereum fund (FETH)

These data testify to the pressure on the institutional sector. BlackRock, today among the largest holders of Ether in the world, held in its fund iShares Ethereum Trust ETF (ETHA) about 3.6 million ETH valued at 15.8 billion dollars as of August 2. With the price decline, the value decreased by 1.5%, reaching about 15.6 billion.

What happens to the price of Ether and what correlation with outflows?

The price of Ethereum fell in parallel with the increase in outflows and unstaking requests. In the week leading up to August 5th alone, ETH lost about 6.5% of its value. A movement that many analysts directly link to the pressure exerted by institutional selling and regulatory uncertainty.

The backlog of unstaking has surged, reaching over 910,000 ETH waiting to be withdrawn from staking pools as of last Wednesday. In terms of value, we are talking about 3.9 billion dollars. This queue of validators now involves at least 15 days and 14 hours of waiting to complete the process.

According to some traders, this unexpected outflow pressure on both fronts – ETF and staking – could trigger a phase of mass “unstaking,” resulting in price turbulence.

Previous records: is the trend really negative for Ethereum?

Despite the bearish wave, the sector still remembers the boom of the previous days, when virus inflows had exceeded several billion dollars in just eight sessions (+3.7 billion according to SoSoValue).

The data remains significant: there have been days when inflows alone have exceeded billion. However, the speed and consistency of the outflows currently raise concern among observers.

How much does the risk of mass unstaking weigh on the price of ETH?

The number of validators in queue for unstaking has reached unprecedented levels. The fear is that, with similar volumes and prolonged waiting times, rapid selling pressure on Ether may be generated. In the past, simultaneous unstaking episodes have led to temporary declines. Today, the overall volume remains higher than many historical trends.

According to the analyses, if the demand for staking recession were to accelerate further, the floor price of Ether could experience ultimate lows. Operators are monitoring the situation with extreme caution.

Can Ether ETF really surpass Bitcoin ETF in shares?

Despite the strong outflows recorded at the beginning of August, the growth of Ether ETF compared to the total supply remains under observation. Some analysts speculate that if the current dynamics continue, ETF on ETH could surpass the share/supply ratio of ETF on Bitcoin even by September.

This data would confirm a growing interest in Ether compared to the more traditional Bitcoin. However, the negative momentum of this week requires maintaining maximum attention to the upcoming daily data.

What to monitor now on Ether ETF and ETH price?

The last 48 hours have shaken the Ether ETF market with unprecedented numbers on the outflows front and growing concerns about the unstaking effect. The immediate impact on the price is already evident, but everything will depend on the ability to absorb the incoming supply and regain trust from institutional investors.

The relationship between supply and demand – as well as the direct comparison with Bitcoin ETFs – could change rapidly again. The future depends on the resilience of the community, the next moves of major managers like BlackRock, and the evolution of unstaking. Follow the flow trends on SoSoValue to stay updated on the latest developments: everything can change in the coming weeks.