Rebecca Cruz Spot ether ETFs are facing a brutal reversal. After a record-breaking August of inflows, the funds have now shed $952 million in just five trading days, underscoring how fast sentiment can swing as recession jitters grow.
Key Takeaways
Five straight days of outflows: Spot ether ETFs saw nearly $1 billion pulled, including a staggering $446.7 million on Friday alone.
Bitcoin contrast: While ether funds bled, spot bitcoin ETFs recorded $246.4 million in net inflows over the same period.
Macro backdrop: Weak U.S. jobs data, looming Fed rate cuts, and intensifying global recession fears are driving risk-off moves.
Price action: Ether is up 16% in the past month, but slipped 1.8% last week, now trading below $4,300.
From Record Highs to Heavy Withdrawals
The timing of the exodus is striking. Just last month, spot ether ETFs raked in $3.87 billion in inflows, dwarfing the $751 million in outflows from bitcoin ETFs over the same stretch. The shift suggests investors are now scrambling for safety, cashing in profits from ether’s strong run while rotating back into bitcoin and even traditional safe havens.
Macro Pressures: Fed, Recession Fears, and Gold’s Surge
Investor sentiment flipped after the latest U.S. jobs report came in weak, reinforcing expectations that the Federal Reserve will cut interest rates at its upcoming meeting. According to CME’s FedWatch Tool, traders are pricing in an 89% chance of a 25 bps cut and an 11% chance of a deeper 50 bps move. On prediction markets like Polymarket, odds for the larger cut are sitting around 12%.
That uncertainty has reignited recession fears, pushing gold above $3,600 for the first time ever and weighing heavily on risk assets across equities and crypto alike.
ETH Outlook: Short-Term Pressure, Long-Term Tailwinds
Despite the turbulence, ether still benefits from structural tailwinds. The passage of the GENIUS Act, which restricts stablecoin issuers from paying interest while clarifying compliance requirements, has boosted expectations for deeper institutional adoption of ETH-linked products.
For now, however, the narrative is one of caution. With the global economy flashing warning signals, traders appear to be trimming exposure to risk-heavy assets like ether—even as bitcoin reclaims its “digital gold” narrative in a time of macro stress.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
