Ethereum-focused exchange-traded funds (ETFs) have hit a roadblock, recording significant outflows as the price of Ethereum (ETH) retreats from recent highs.
On August 18, U.S. spot Ethereum ETFs saw a net outflow of $196.6 million, marking the second consecutive day of losses and ending an eight-day streak of inflows. This follows a record-breaking week that saw over $1 billion in a single day as ETH’s price surged to multi-month highs.
The largest outflows came from BlackRock, which saw $87 million withdrawn, and Fidelity, with $78.4 million in outflows. Grayscale, VanEck, Franklin Templeton, and Bitwise also experienced more modest withdrawals.
The recent inflows were likely driven by investors taking profits after Ethereum’s quick climb. The cryptocurrency’s rally proved short-lived, with its price now hovering around $4,226, down from a peak above $4,700. ETH is down slightly by 0.92% over the past 24 hours and 1.5% for the week, though it remains up significantly over the last month. Bitcoin ETFs are also experiencing a similar trend, with outflows totaling around $136 million.
Despite the recent dip, institutional interest in Ethereum appears to be holding strong. Ethereum ETFs now hold approximately 6.5 million ETH, a value of around $27.7 billion, which represents over 5% of the cryptocurrency’s total supply. This is a significant increase from just two months ago when holdings were around $10 billion.
Leading this accumulation charge is BlackRock, which has been steadily increasing its ETH holdings for months. According to data from Arkham Intelligence, BlackRock’s Ethereum stash is valued at close to $14.3 billion, making ETH the second-largest asset in its portfolio. This marks a 190% jump in its ETH holdings since the beginning of the year.
The growing institutional demand, along with increased corporate adoption, has analysts optimistic about Ethereum’s future. Standard Chartered recently raised its year-end price target for ETH to $7,500, citing these factors as key catalysts for continued growth.
