Ethereum’s Rally to $4K Despite Record Outflows from ETH ETFs

In the last 24 hours, Ethereum (ETH) reclaimed the $4,000 price level as the price jumped from $3,969.79 to hit a peak of $4,034.29. The rebound has also been characterized by several broader market events, such as intense exchange-traded funds (ETFs) outflows and price volatility.

Record $795.8 Million Outflows Hit Ethereum ETFs

As per Farside Investors data, U.S.-based spot Ethereum ETFs recorded $795.8 million worth of outflows in the past week. The volume of outflows makes it the worst in the history of trading for the Ethereum ETF since the asset launched in July 2024.

Meanwhile, trading volume stood at over $10 billion amid these massive outflows. The outflows surpassed the record set in the first week of September, between 1st and 5th, with over $8 million. Notably, the week that ended on September 5, the spot Ethereum ETF registered outflows valued at $787.7 million.

The development comes at a time of price volatility for the crypto asset amid stagnation below $4,500. In the last 30 days, ETH has not been able to maintain stability above this price range, and it even slipped below $4,000 recently.

BlackRock and Fidelity Lead Institutional Bleeding

This price fluctuation triggered massive outflows among institutional investors. BlackRock’s ETHA fund, which usually maintains streaks of inflows, reversed the trend. BlackRock’s highest outflow occurred on September 26 with $199.9 million leaving the asset manager. It also recorded $15.1 million and $26.5 million on September 22 and 24, respectively.

Fidelity’s FETH which used to lead in inflows, bled all through the week. Its highest outflow was on September 25, when it lost $158.1 million. It started the first two days of the week with outflows of $33.1 million and $63.4 million respectively, and closed the week with a loss of $74.4 million.

While most asset managers were experiencing record outflows or zero flows, Grayscale’s ETHE managed to register an inflow of $17.9 million.

Ethereum Price Holds $4,000 Amid Weak Trading Volume

Market participants are keen to see how Ethereum ETFs perform this week after the price reclaimed $4,000. As of this writing, Ethereum is changing hands at $4,021.94, which represents a 0.03% increase in the last 24 hours.

However, the trading volume remains a source of concern. It is down by 36.34% at $18.97 billion. There are anticipations that volume could climb once investors rekindle their interest in the asset

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