Key Points:
- Fidelity’s Ethereum ETF (FETH) recorded a massive $25 million outflow on October 1.
- Total Ether ETF outflows across nine issuers reached $48.6 million on the same day.
- The only inflows came from 21Shares and VanEck Ethereum ETFs, totaling $3.9 million.
- Despite outflows, FETH remains the second-largest Ether ETF with $453.5 million in assets.
Fidelity’s Ethereum ETF Faces Record Outflows
On October 1, 2024, Fidelity’s Ethereum ETF (FETH) recorded its highest-ever daily outflow, with $25 million withdrawn from the fund. This marks the largest single-day outflow among all U.S.-based spot Ether ETFs, excluding the Grayscale Ethereum Trust (ETHE). The significant outflow highlights mounting pressures in the Ethereum exchange-traded fund (ETF) market.
In total, Ether ETFs saw outflows of $48.6 million on the same day, with the bulk of the withdrawals coming from three major funds: Fidelity’s FETH, Grayscale’s ETHE, and Bitwise’s Ethereum ETF (ETHW). Grayscale led the way with $26.6 million in outflows, followed by Fidelity with $25 million, and Bitwise contributing $0.9 million to the tally. Despite these sizable withdrawals, other funds such as 21Shares’ Core Ethereum ETF (CETH) and VanEck’s Ethereum ETF (ETHV) managed to buck the trend, recording modest inflows of $1.2 million and $2.7 million, respectively.
Impact on the Ethereum ETF Market
The outflows from FETH underscore the growing volatility in the Ethereum ETF space, with many investors re-evaluating their positions. While Grayscale’s ETHE continues to hold the record for the highest daily outflows, the recent figures from Fidelity suggest increasing caution among investors. Despite these challenges, Fidelity’s ETF remains a strong player in the market, ranking as the second-largest Ether ETF with $453.5 million in total assets.
At the top of the leaderboard, BlackRock’s iShares Ethereum Trust (ETHA) continues to dominate with over $1.14 billion in assets as of October 1, reaffirming its position as the largest Ether ETF in the U.S. market.
Overall, the growing outflows have led to a net $572 million deficit in spot Ether ETFs across the U.S., a sign of weakening investor sentiment toward these funds.
Bitcoin ETF Market Mirrors Ethereum Outflows
Similar trends were observed in the Bitcoin ETF market, which also experienced significant outflows on October 1. The total outflows reached $242.6 million, the highest in almost a month, with the majority of withdrawals coming from the Fidelity Wise Origin Bitcoin Fund ($144.7 million) and the ARK 21Shares Bitcoin ETF ($84.3 million).
The sudden outflows coincided with a drop in Bitcoin’s spot price, which fell by almost $4,000 following geopolitical tensions in the Middle East. Despite this, Bitcoin prices managed to recover, trading around $61,750 at the time of publication.
As both the Ethereum and Bitcoin ETF markets experience heightened volatility, these developments highlight the ongoing uncertainty in the broader cryptocurrency market. Investors continue to react to global events and market conditions, further influencing flows into and out of cryptocurrency-related financial products.