Ether ETFs Face $952M Outflows Despite Strong Monthly Gains

Spot ether exchange-traded funds (ETFs) saw their fifth consecutive day of redemptions this week, with investors pulling a total of $952 million, including $787 million during the shortened four-day trading period.

The sharpest withdrawals came on Friday, when $446.7 million exited ETH-linked products, according to SoSoValue. The pullback follows a blockbuster August in which ether ETFs attracted $3.87 billion in inflows, even as bitcoin ETFs recorded $751 million in net outflows. In a reversal of that trend, spot bitcoin ETFs added $246.4 million in inflows over the past week.

Despite the recent cooling, ether (ETH) remains up more than 16% over the past month, buoyed by the passage of the GENIUS Act, which restricts stablecoin issuers from paying interest and provides regulatory clarity that analysts believe could pave the way for deeper institutional adoption. Ether was last trading just below $4,300, down 1.8% on the week.

The latest outflows appear tied to broader risk-off sentiment. Weak U.S. employment data increased expectations of a Federal Reserve rate cut later in September, while recession fears weighed further on risk assets. CME’s FedWatch tool now shows an 89% probability of a 25-basis-point cut and an 11% chance of a 50-basis-point move. Prediction markets on Polymarket similarly price a 12% likelihood of the larger cut.

Safe-haven demand has also surged, with gold topping $3,600 per ounce for the first time, underscoring investor caution amid slowing economic data and geopolitical uncertainty.