Across four sessions in the shortened Labor Day trading week, Ethereum funds lost a combined $787.6 million, according to data compiled by Farside. Friday alone accounted for nearly $447 million in redemptions.
The reversal stands in sharp contrast to August, when Ethereum ETFs absorbed $3.87 billion in net inflows, even as Bitcoin ETFs bled roughly $751 million over the same month. Interestingly, last week’s rotation flipped the trend: Bitcoin funds brought in $250.3 million just as Ether was seeing withdrawals.
Market Mood Mixed
Ethereum’s price action hasn’t been disastrous — the asset is still up more than 16% in the past 30 days, though it has slipped almost 3% over the past week to trade near $4,301. Sentiment gauges like the Crypto Fear & Greed Index have been stuck at “Neutral,” reflecting uncertainty after summer’s rally.
Some traders expect flows to rebound quickly. Market analyst Ted noted that continued strength in ETH’s price could pull institutions back into the ETF trade sooner rather than later.
Long-Term Optimism Still Intact
Despite the wobble, Ethereum bulls remain undeterred. Tom Lee, chairman of BitMine, reiterated his bold call that ETH could climb to $60,000 in the long run. In his view, Wall Street’s growing interest in Ethereum could mirror the impact of the U.S. abandoning the gold standard in 1971 — a structural shift that permanently changed asset demand.
Meanwhile, treasury managers continue stacking ETH. BitMine itself now controls more than $8 billion worth of Ether, while corporate treasuries globally hold nearly 3% of the entire supply. Data from Santiment also shows whale wallets have increased their holdings by 14% over the last five months, quietly accumulating on dips.
The Bottom Line
Short-term outflows don’t appear to have shaken Ethereum’s core narrative. Between institutional treasuries, whale accumulation, and persistent long-term forecasts, ETH continues to attract believers — even as ETF flows remind the market that no rally comes without turbulence.
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