Consecutive redemptions highlight waning retail demand and regulatory uncertainty
U.S.-based spot Ether ETFs have recorded five straight days of net outflows, totaling $795.8 million, as Ether’s price slid more than 10% over the past week. The pullback marks the steepest redemption streak since early September, when ETH traded near $4,300.
On Friday alone, spot Ether ETFs logged $248.4 million in outflows, according to Farside data. ETH was changing hands at $4,013 at publication, down 12% over the past 30 days.
Crypto analyst Bitbull described the move as “a sign of capitulation as the panic selling has been so high.” Analysts noted that negative net taker volume on Binance has further signaled waning retail participation.
Staking approval could shift sentiment
The outflows come as investors await clarity on whether the U.S. Securities and Exchange Commission (SEC) will allow staking in spot Ether ETFs. Grayscale recently indicated plans to stake part of its holdings, a move some view as a signal of confidence that regulatory approval is near.
Bitcoin ETFs were not immune to the downturn, registering $897.6 million in outflows over the same period as BTC slipped 5.28% to around $109,551.
ETF analyst James Seyffart noted that while inflows have cooled, Bitcoin ETFs remain historic: “They are the biggest launch of all time… the amount of money that has come in here is unlike anything we have ever seen.”
With Ether under pressure from both price declines and ETF outflows, market watchers say the approval of staking could be a critical catalyst for reversing sentiment. Until then, the data suggests institutional and retail interest is cooling compared to the initial post-launch enthusiasm.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.