Ethereum ETFs see biggest daily outflow as big investors cash in gains after months of heavy buying and price surge to $3,683.
Institutions shift from ETFs to direct ETH holdings with staking rewards for more control and fewer regulatory hurdles.
Blackrock denies XRP and SOL ETF plans but market still expects expansion beyond Bitcoin and Ethereum in the future.
The Ethereum Spot ETF market has just seen its biggest daily outflow, signaling a sudden shift in institutional sentiment. This movement comes after two months of record inflows that fueled Ethereum’s rise to $3,683.65.
Data from February to August 2025 shows a full cycle of skepticism, accumulation, and now profit-taking. Investors and traders are now watching closely to see if this marks a pause or a turning point.
During its early months, the ETF saw steady outflows, with some days losing as much as $60 million. Institutions appeared cautious and slow to commit capital. However, this changed in late May.
Source: Satoshi Club
The broader crypto market recovered, and inflows surged. By late June and early July, daily net inflows peaked at $70 million. Consequently, total assets under management swelled to $20.61 billion.
Institutional Strategies Shift
The recent drop in inflows to $35.12 million suggests large investors are locking in profits after the summer rally. This pattern aligns with typical institutional strategies. First comes skepticism, followed by strong accumulation, then planned exits to secure gains. Besides, Ethereum’s price performance appears tightly linked to these ETF flows, showing the influence of traditional financial products.
The U.S. SEC has also approved in-kind creation and redemption for crypto ETFs. This move makes them function more like commodity ETFs. Hence, investor confidence in regulated Ethereum products is increasing.
Nonetheless, a few organizations are using Ethereum treasury companies. These companies own ETH directly and profit from staking incentives, as contrast to ETFs. They also frequently have a strategic advantage due to fewer regulatory constraints.
Broader Market Developments
Meanwhile, speculation over new crypto ETFs continues. Market chatter recently centered on Blackrock and the possibility of a spot XRP ETF. Nate Geraci, president of Novadius Wealth Management, expressed confidence such a filing would come. However, Blackrock quickly clarified that it has no current plans for an XRP or SOL ETF.
Even so, some market watchers believe Blackrock will eventually expand beyond Bitcoin and Ethereum. They recall its earlier resistance to Bitcoin before reversing course. Consequently, expectations for new crypto ETF products remain alive despite the latest pullback.
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