Ethereum funds saw $146M pulled out as investors grew cautious, showing less confidence and a move away from risky assets.
ETH’s price drop from $14,000 to about $4,000 shows money leaving the market and investors waiting for clearer conditions.
Political uncertainty in the U.S. and profit-taking have made investors more careful, keeping crypto fund flows unstable for now.
Ethereum spot ETFs saw significant withdrawals on October 20, recording $146 million in net outflows, according to Wu Blockchain. This marks the third consecutive day of outflows for Ethereum ETFs and extends Bitcoin’s streak to four days, with an additional $40.47 million leaving Bitcoin spot funds.
As per the chart shown by Wu Blockchain, early on, inflows were primarily negative, and the price of ETH fell from almost $14,000 to less than $10,000. As a result, overall net assets decreased from around $15 billion to less than $10 billion, indicating ongoing capital flight.
Fluctuating Inflows Reflect Market Uncertainty
From November 2024, inflows turned briefly positive, peaking in late November as ETH and total assets rebounded. Both ETH’s price and total assets went up for a while, with ETH getting close to $12,000 and assets hitting $12 billion. But the recovery didn’t last. Between December 2024 and May 2025, more money started leaving the market again, causing ETH’s price to fall back down to around $7,000.
Around mid-2025, investor confidence started to bounce back. Between June and August, more money flowed into Ethereum funds, pushing total assets close to $30 billion. ETH’s price also climbed above $14,000 during that time. However, the excitement didn’t last long, as the market soon faced another downturn.
After August, flows turned volatile again, alternating between inflows and outflows. As of October 20, 2025, net inflows fell -145.68 million, with assets steady at $26.83 billion and ETH at $3,981.36.
Broader De-Risking Trend Across Crypto ETFs
Market analysts interpret these outflows as part of a wider de-risking phase. Vincent Liu, Chief Investment Officer at Kronos Research, said, “Investors are locking in profits and sidelining fresh capital; both ETFs are seeing reduced risk appetite and thinner bid depth across the board.”
Additionally, Liu pointed to rising political tension in the U.S. as a catalyst. “The erosion of trust in policy stability is pushing capital toward defensive plays,” he noted. Hence, investors appear cautious as uncertainty clouds macroeconomic outlooks.
Liu expects volatility to persist. “A more defined macro path or easing US political tension could restore confidence, reviving risk appetite and turning ETF flows back to positive,” he added.
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