by Coinstrooper Crypto Articles
Quick Take
  • Ethereum exchange-traded funds recorded their steepest weekly outflows to date, shedding nearly $800 million last week as crypto markets slipped.
  • Spot Ethereum ETFs saw a record $795.6 million in outflows last week, led by heavy redemptions from Fidelity’s FETH.
  • ETH briefly dipped below $4,000, triggering the worst two-day outflow stretch since mid-August.
  • Bitcoin ETFs also logged $902.5 million in weekly outflows, though BlackRock’s IBIT continued to hold the largest market share.

What Happened

The filings follow the recent launch of the REX-Osprey Solana Staking ETF on the Cboe BZX Exchange, which drew $12 million in first-day inflows.

Market Context

Ethereum exchange-traded funds recorded their steepest weekly outflows to date, shedding nearly $800 million last week as crypto markets slipped.

Bitcoin ETFs also logged $902.5 million in weekly outflows, though BlackRock’s IBIT continued to hold the largest market share.

The sell-off came amid elevated trading volumes, which topped $10 billion across the funds.

ETH prices briefly fell below $4,000 on Thursday and Friday, sparking two consecutive days of $250 million in redemptions from Ethereum funds, the worst 48-hour span since mid-August.

Ethereum has since recovered slightly and was trading near $4,020 as of Saturday.

Despite the recent volatility, BlackRock’s bitcoin product continues to grow its dominance.

Data indicates that IBIT has held as much as 80% of the market share among spot Bitcoin ETFs. However, unlike several competitors, BlackRock has yet to file for a spot Solana ETF.

Geraci and others believe the inclusion of staking language in these filings could pave the way for long-awaited spot Ethereum ETFs with staking capabilities.

Why It Matters

Solana ETF Filings Signal Institutional Momentum

ETF analyst Nate Geraci expects the US SEC could approve them by mid-October, calling it a pivotal month for digital asset products.

Details

Key Takeaways:

Spot Ethereum ETFs saw a record $795.6 million in outflows last week, led by heavy redemptions from Fidelity’s FETH.

ETH briefly dipped below $4,000, triggering the worst two-day outflow stretch since mid-August.

According to data from SoSoValue, spot Ethereum ETFs posted $795.6 million in net outflows for the week ending September 26, narrowly surpassing the previous record of $787.7 million set earlier this month.

Fidelity’s FETH Leads $800M Ethereum ETF Exodus

The heaviest withdrawals hit BlackRock’s flagship ETHA fund and Fidelity’s FETH.

ETHA, the largest Ethereum ETF by assets under management, lost over $200 million but still retains more than $15.2 billion in total assets.

Meanwhile, FETH saw more than $362 million in outflows, leading the weekly slide.

Analysts attributed the sharp drop to a mix of technical pressure, broader economic uncertainty, and leveraged positions being liquidated.

Bitcoin ETFs also posted major outflows for the same week, with a total of $902.5 million leaving the funds. Friday alone saw $418.3 million in withdrawals, the highest single-day number in more than a month.

As with Ethereum, BlackRock’s IBIT fund weathered the storm better than rivals. IBIT lost just $37.3 million on Friday, while Fidelity’s FBTC saw over $300 million pulled in a single day.

Several top asset managers, including Fidelity, Franklin Templeton, and Bitwise, have submitted updated S-1 filings for spot Solana ETFs, some with staking features.

Analysts say Solana is quickly becoming the next altcoin favored by institutions, with strong inflows also reported in Europe-based Solana ETPs.