U.S. spot ETH ETFs have seen net outflows for nine consecutive trading days, yet ETH recovered to around $2,546 on the morning of October 12.
The market has suddenly focused on this contrast: prices can rebound, but funds have yet to return through the ETF channel. ETFs saw net outflows of about $542 million last week, their worst week since January. ETHA accounted for the bulk of that, with outflows of around $477 million.
My take is that prices are currently testing support, and the rebound shouldn’t yet be interpreted as a return of funds. ETF net outflows also don’t mean all holders are selling, and morning prices don’t represent the full day’s movement. If outflows narrow while prices hold up, the case for support will become more convincing. If redemptions continue, the rebound will face another test.
With ETFs seeing sustained withdrawals, is ETH’s rebound a sign of strength—or does it merely show that the market is underestimating the pressure still to come?
The market has suddenly focused on this contrast: prices can rebound, but funds have yet to return through the ETF channel. ETFs saw net outflows of about $542 million last week, their worst week since January. ETHA accounted for the bulk of that, with outflows of around $477 million.
My take is that prices are currently testing support, and the rebound shouldn’t yet be interpreted as a return of funds. ETF net outflows also don’t mean all holders are selling, and morning prices don’t represent the full day’s movement. If outflows narrow while prices hold up, the case for support will become more convincing. If redemptions continue, the rebound will face another test.
With ETFs seeing sustained withdrawals, is ETH’s rebound a sign of strength—or does it merely show that the market is underestimating the pressure still to come?