Ether ETFs Suffer Epic Sell-Off: $197M Outflows in One Day!

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It was a gloomy Monday morning when the world of Spot Ether funds was shaken to its core. The calm of the weekend was shattered as nearly $200 million in outflows marked the beginning of a tumultuous week, a trend that had ominously started just days before. 🌬️💰

The outflows, totaling $196.7 million, were the second-largest ever recorded since the inception of Spot Ether (ETH) exchange-traded funds (ETFs). Only once before, on August 4th, had the market seen such a dramatic exodus, with a staggering $465 million leaving the funds, according to the wise sages at SoSoValue. 📊📉

This latest wave of despair was preceded by a $59 million loss on the previous Friday, making for a two-day total of $256 million in outflows. Yet, in the grand scheme of things, these numbers seemed almost trivial compared to the record-breaking $3.7 billion inflow streak over the preceding eight trading days, during which some days saw inflows exceeding $1 billion. 🤷‍♂️😂

BlackRock’s ETHA Sees $87 Million in Outflows

Among the issuers, BlackRock and Fidelity were the hardest hit, with BlackRock’s ETHA losing $87 million and Fidelity’s share totaling $79 million in outflows on Monday. Last Friday, Fidelity’s Ethereum Fund (FETH) alone suffered a massive $272 million in outflows, significantly contributing to the overall $59 million in daily losses. 💔💔

Despite these setbacks, BlackRock has emerged as one of the largest institutional holders of Ether. As of last Friday, the iShares Ethereum Trust ETF (ETHA) boasted a holding of approximately 3.6 million ETH, valued at a cool $15.8 billion. However, by Monday, the dollar value of ETHA’s holdings had dipped by 1.5% to $15.6 billion. 📉📉

During this period, the price of ETH itself plummeted by about 6.5%, as reported by the ever-watchful CoinGecko. 📉📉

Ether Unstaking Queue Reaches New Heights

The drama surrounding Ether ETF outflows and the rollercoaster ride of ETH prices coincides with a surge in the Ether unstaking queue. This phenomenon, which tracks the amount of Ether awaiting withdrawal from staking pools by Ethereum validators, reached a new all-time high of 910,000 ETH, valued at roughly $3.9 billion, on Tuesday. 🚀🔥

Data from ValidatorQueue, a third-party website monitoring validator queues on the Ethereum proof-of-stake (PoS) network, reveals that validators now face a waiting period of at least 15 days and 14 hours to unstake their ETH. 🕒⏳

Crypto market pundits have sounded the alarm, warning of a potential “unstakening.” Bitcoin (BTC) advocate Samson Mow tweeted, “The flippening will never happen, but the unstakening is coming.” He even ventured to predict that the ETH/BTC ratio could drop to “0.03 or lower.” At the time of writing, Ether traded at 0.036 BTC, according to TradingView. 📉📉

Ether ETFs Gain Ground Versus Bitcoin ETFs

Amidst the turmoil, a curious trend has emerged: Spot Ether ETFs have begun to outpace Bitcoin ETFs in terms of inflows, reflecting a growing preference among investors for ETH over BTC. 📈🚀

Data from Hildobby, a data analyst at Dragonfly, shows that as of Monday, the ratio of BTC supply held in ETFs stood at 6.4%, while the equivalent ratio for ETH and Ether ETFs was 5%. “If the current growth rate continues, the ETH-ETF will surpass the BTC-ETF in terms of the percentage of total supply contained by September,” the analyst predicted. 📈🚀

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2025-08-19 12:45