Ether ETFs Experience Major Outflows

U.S. exchange-traded funds linked to ether (ETH) have faced $401 million in net outflows in March, erasing earlier gains from January and February.

The redemptions account for nearly 6% of the total $6.77 billion in assets held by spot ether ETFs, according to SoSoValue. March 4 was the only day this month with positive inflows, totaling $14.58 million. In contrast, January and February saw inflows of $101 million and $60 million, respectively.

Spot bitcoin ETFs also encountered withdrawals, amounting to $893 million in net outflows this month; however, this represents only about 0.9% of their $94.35 billion in assets under management, indicating a less severe impact. Bitcoin funds remain positive for the year, buoyed by strong inflows of $5.25 billion in January.

Market performance further illustrates the disparity. Since March 1, ether has decreased approximately 8.5%, while bitcoin has gained more than 3%. Year-to-date, ether has dropped over 37%, trading around $2,080, while bitcoin has seen a smaller decline of 7.5%, reaching about $87,300. The broader CoinDesk 20 Index has fallen by 21% in the same timeframe.

Despite these outflows, ether ETFs still maintain a net inflow of $2.42 billion since their inception, though this pales in comparison to the $36.05 billion amassed by bitcoin ETFs, emphasizing a notable difference in investor interest between the two assets.