MORGANABLE BUSINESS / DIGITAL FINANCE
US Ethereum exchange-traded funds (ETFs) recorded $1.61 billion in net outflows in October, marking their largest monthly withdrawal since the products began trading in July 2024.
Akure —
US Ethereum exchange-traded funds (ETFs) recorded $1.61 billion in net outflows in October, marking their largest monthly withdrawal since the products began trading in July 2024.
The withdrawals ended a three-month period of net inflows and coincided with a sharp fall in the price of ether.
Data from SoSoValue showed that investors withdrew approximately $1.607 billion from US spot Ethereum ETFs over 22 trading sessions between October 1 and October 30.
The figure exceeded the previous record of about $1.42 billion, set in November 2025. It also highlighted a sharp change in demand for investment products that had attracted strong interest earlier in the year.
October’s withdrawals came after the funds recorded combined inflows of about $3.05 billion between July and September.
Weekly figures showed net outflows in all five weeks that ended during the month, pointing to persistent withdrawals rather than a single day of heavy selling.
The heaviest weekly withdrawal occurred in the week ending October 9, when investors pulled approximately $542 million from the funds.
In addition, October 30 recorded a net outflow of about $155.7 million. Across the month, 19 sessions ended with net outflows, while only three recorded inflows.
Those positive sessions brought limited relief. The funds attracted about $24.8 million on October 13, $15 million on October 21 and $4.4 million on October 23.
Together, they generated roughly $44.2 million, a small amount compared with the total withdrawn during the month.
ETHER PRICE ALSO DECLINED
The record withdrawals coincided with a difficult month for ether, the digital asset that powers the Ethereum network.
Ether fell by approximately 16.1 per cent in October and ended the month around $2,250, according to market reports.
It briefly approached $2,800 early in the month but failed to hold that level as selling pressure increased.
However, the cryptocurrency showed signs of recovery in November. On November 4, ether traded above $2,300, reaching approximately $2,324.39, according to available market data.
This represented a recovery from its reported October closing level of around $2,250 and suggested some improvement in short-term market sentiment.
The recovery came as investors continued to assess the wider cryptocurrency market. Nevertheless, a rise in ether’s price does not automatically mean that demand for Ethereum ETFs has improved.
ETF flows and cryptocurrency prices measure different market activities, so investors will need to monitor both indicators.
Fund-level figures showed that BlackRock’s iShares Ethereum Trust, which trades under the ticker ETHA, accounted for the largest share of October’s withdrawals. The product recorded approximately $1.42 billion in net outflows during the month.
Other products also recorded withdrawals, although their totals were considerably smaller. Grayscale’s ETHE recorded about $119.1 million in net outflows, while BlackRock’s ETHB saw approximately $52.3 million leave the fund.
However, not every fund experienced withdrawals throughout the month. Fidelity’s Ethereum Fund, known by the ticker FETH, recorded net inflows of about $36 million.
The Morgan Stanley Spot Ethereum ETF, trading as MSSE, also attracted approximately $3.7 million. These inflows were not enough to offset the wider withdrawals.
The difference between individual funds suggests that investors did not treat every product in the same way.
However, the reported flow data do not identify the reasons behind individual investment decisions. They show where money moved, but they cannot explain each investor’s strategy or expectations.
The withdrawals also reduced the total net assets held by US spot Ethereum ETFs. SoSoValue figures showed that combined net assets fell to approximately $13.22 billion by the end of October, compared with about $17.60 billion at the end of September.
Cumulative net inflows also declined. They stood at approximately $12.29 billion at the end of October, down from about $13.89 billion a month earlier.
Despite the sharp monthly withdrawal, the cumulative figure remained positive, meaning the funds had attracted more money than they had lost since their launch.
This distinction matters because monthly outflows do not mean that all investors have abandoned the products.
Instead, the figures show the net difference between money entering and leaving the funds. A fund can record a large monthly withdrawal and still maintain positive cumulative inflows.
ETF flow figures measure the net amount of money entering or leaving a product. They are different from trading volume, which records the value of shares traded between market participants.
They are also different from changes in assets under management, because market prices can raise or lower the value of a fund’s existing holdings.
US spot Ethereum ETFs give investors access to ether through exchange-traded investment products.
They allow people to gain exposure to the cryptocurrency without directly buying and storing it in a personal digital wallet.
This structure can also appeal to investors seeking regulated products through familiar channels.
When investors buy into these funds, the products may need to acquire more ether to support their holdings. Conversely, net redemptions can reduce the amount of ether held by a fund.
However, daily flows alone do not explain every movement in the cryptocurrency market, which also responds to trading activity on exchanges and wider economic developments.
October’s record outflows therefore provide an important signal about investor behaviour, but they should not be treated as a direct forecast of future prices.
Market participants will need to consider other indicators, including spot-market demand, derivatives activity and broader risk appetite, before drawing conclusions about ether’s direction.
Investors will watch whether flows recover in November. They will also monitor ether’s ability to maintain its position above $2,300 after its October decline.
A sustained improvement in fund demand could indicate renewed interest from investors. On the other hand, continued withdrawals may reinforce concerns about the strength of institutional demand.
For now, the October figures mark a significant market setback for US spot Ethereum ETFs. Their largest monthly outflow since launch.
Followed three months of inflows and came alongside a notable fall in ether’s value. November trading will show whether investors return to these products or remain cautious.
