Spot Ether ETF outflows have broken an eight-day streak of inflows that pulled in nearly $3.7 billion, signaling a sharp reversal in investor sentiment.
Fresh data from Farside shows U.S. spot Ether ETFs recorded $59.3 million in withdrawals on Friday, marking the first sign of cooling momentum after two weeks of bullish inflows that boosted confidence across Ethereum markets.
ETH inflows. Source: Farside
The shift came just as Ether narrowly missed reclaiming its November 2021 all-time high of $4,878, falling short by 1.94% before retreating to $4,448 at the time of reporting, CoinMarketCap data showed.
“ETF flows are one of the strongest signals institutional investors watch, and Friday’s Spot Ether ETF outflows highlight the need for caution,” — Jake Kennis, Analyst, Nansen.
Why ETF flows matter for Ether’s price
Spot Ether ETFs, launched in July 2024, have quickly become a barometer for institutional sentiment in Ethereum. Since inception, they have attracted $12.68 billion in net inflows. Analysts say these flows can play a decisive role in determining whether Ether can break through resistance and reclaim its historic highs.
“The rally will hold as long as the flows and narrative remain strong,” — Jake Kennis, Nansen.
Other traders remain more bullish. Independent crypto trader Langerius suggested Ether could reach $10,000 if consistent weekly inflows continue. However, Friday’s Spot Ether ETF outflows may signal that institutional demand is cooling, at least temporarily.
Market sentiment and institutional activity
While inflows into Ether ETFs surged earlier in the week — which some traders described as “institutional FOMO” — market sentiment has shown mixed signals. Data from Santiment, a blockchain analytics platform, indicates that traders on social media are showing less enthusiasm for Ether compared to Bitcoin, a factor that could influence short-term performance.
Crypto trader Merlijin The Trader commented last Thursday, “ETF inflows just went vertical. This is what institutional FOMO looks like.” But with the sudden Spot Ether ETF outflows, the question is whether that momentum can sustain.
Meanwhile, Ethereum’s staking ecosystem is showing fresh signs of activity. More than 877,000 Ether, worth approximately $3.88 billion, is currently queued for withdrawal, according to CoinMarketCap. Analysts say this could point to profit-taking, especially if ETF demand weakens further.
Outlook for Ether amid Spot Ether ETF outflows
Despite Friday’s setback, Ether has posted a strong month, climbing 29.6% over the past 30 days. The combination of institutional buying through ETFs and treasury company allocations has helped absorb much of the selling pressure.
DeFi analyst Ignas argued that demand from large Ether buyers continues to counterbalance withdrawals:
“Treasury accumulation and ETF participation are still powerful forces keeping Ether stable, even with some Spot Ether ETF outflows.”
For investors, the trajectory of ETF flows remains a key metric. Sustained inflows could pave the way for Ether to surpass its all-time high, while continued Spot Ether ETF outflows might stall momentum and spark profit-taking across the market.
As Ether consolidates just below record levels, all eyes are on whether institutional demand can reassert itself — or if the latest Spot Ether ETF outflows mark the start of a broader cooling trend.
Moses Edozie is a writer and storyteller with a deep interest in cryptocurrency, blockchain innovation, and Web3 culture. Passionate about DeFi, NFTs, and the societal impact of decentralized systems, he creates clear, engaging narratives that connect complex technologies to everyday life.
