Ethereum ETF momentum collapses after record August

Ethereum ETFs experienced a significant decline in September, with inflows plummeting from $3.9 billion in August to just $285 million, marking one of the steepest reversals since their launch earlier this year. The reduction illustrates a fragile demand in a market driven by ETF flows reflecting price action. Notably, it was the worst week for aggregate flows since March, coinciding with Bitcoin ETFs seeing $900 million in outflows and Ethereum ETFs losing $800 million. Factors contributing to the downturn include typical monthly trends that often involve outflows following options expirations, according to experts. The price of Ethereum also faltered, experiencing a near 20% drop in September before a slight recovery. Meanwhile, Bitcoin ETFs were more resilient, garnering $3.5 billion in net inflows, driven by supportive macroeconomic shifts. This disparity underscores that institutional preference remains with Bitcoin ETFs, while Ethereum ETFs seem more susceptible to market sentiment changes.

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