Spot Ethereum ETFs log $465 million in largest daily outflow as analysts cite short-term profit-taking

U.S. spot Ethereum exchange-traded funds experienced $465.1 million in net outflows on Monday, marking the largest single-day outflows since their launch. 

The Monday outflows followed a period of record weekly inflows for these spot ether ETFs over recent weeks, with inflows of $2.2 billion in the second week of July, $1.9 billion in the third week, and $154.3 million last week, according to SoSoValue data.

BlackRock's ETHA led Monday's outflows with $375 million exiting the fund. Fidelity's FETH, Grayscale's ETHE, and the Grayscale Ethereum Mini Trust also saw outflows.

"While this could signal short-term profit-taking after ETH's recent rally, it doesn't necessarily reflect declining institutional demand, especially given the sector's record $5.4 billion inflows in July and corporate accumulation of ETH," said Nick Ruck, director of LVRG Research.

Vincent Liu, CIO of Kronos Research, shared similar views. "This move reflects short-term profit-taking and risk-off rotation, not a long-term rejection of ETH exposure," said Liu.

Ethereum rose 4.1% in the past 24 hours to trade at $3,675 at the time of writing, recovering from a weekend dip, according to The Block's price page.

Peter Chung, head of research at Presto Research, suggested that the $465 million outflow might have occurred on Friday when weak payroll data triggered a risk market selloff, as ETF flow data can have a one- or two-day lag.

"[Given] the market rebounded strongly last night, you will probably see a reversal of this figure tomorrow. No need to read too much into these daily fluctuations," Chung added. 

Meanwhile, spot bitcoin ETFs recorded $333.2 million in net outflows on Monday, compared to outflows of $812.3 million on Friday.