Ethereum ETFs Face $22M Outflow as Investors React to Market Trends

Ethereum exchange-traded funds (ETFs) recorded significant outflows of $22 million on Tuesday, according to SoSoValue. BlackRock’s iShares Ethereum Trust ETF (ETHA) saw the largest outflows at $11.82 million, followed by Fidelity Ethereum Fund (FETH) with $9.75 million. This marks five consecutive days of outflows, signaling growing investor concerns.

Bitcoin ETFs also struggled, experiencing a net outflow of $371 million. Despite the initial hype surrounding Ether ETFs, they have underperformed compared to Bitcoin ETFs. The lack of staking options remains a key issue, limiting their appeal to investors looking for yield opportunities.

Fidelity recently proposed enabling staking for its Ethereum ETF, aiming to offer additional benefits and strengthen the digital asset market in the U.S. If approved, this would be the first Ether ETF to allow staking, a move that could improve adoption and network security. The SEC has highlighted staking as a key priority, but regulatory approval remains uncertain.

Ethereum’s price dropped to $1,874 on Tuesday, extending its losses to over 43% for the year. Market sentiment remains weak, but Consensys CEO Joseph Lubin remains optimistic, calling the current market conditions an "epic setup" for future growth.

As Ethereum struggles to regain momentum, investor sentiment will likely hinge on regulatory decisions and broader market trends. The coming weeks will be crucial for the asset’s performance and the future of Ethereum ETFs.