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A single day of trading exposed just how quickly institutional money can move when the Federal Reserve shifts course. On September 16, BlackRock’s iShares Ethereum Trust, known by its ticker ETHA, saw $110.03 million walk out the door in one session — the largest single-fund redemption recorded across the entire US spot Ethereum ETF market that day. The withdrawal wasn’t an isolated event. It came as part of a broader wave of Ethereum ETF outflows that rattled the sector following the Federal Reserve’s first interest rate hike in three years.
Key takeaways
- BlackRock’s iShares ETHA lost $110.03 million in a single session on September 16, the biggest individual fund redemption of the day.
- Total US spot Ethereum ETF outflows reached $224 million on the same date.
- US spot Bitcoin ETFs faced nearly $296 million in outflows during that same session, with BlackRock’s IBIT accounting for $144.1 million of it.
- Ethereum’s spot price still rose 1.54% on the day, despite the heavy redemptions.
- Cumulative net inflows for US spot Ethereum ETFs remained strong at roughly $13.14 billion.
Large Ethereum ETF Outflows Amid Federal Reserve Rate Hike
The trigger behind the sell-off appears to be macroeconomic rather than asset-specific. Investor reaction to the Federal Reserve’s first rate hike in three years set off a chain reaction across crypto fund products, pushing institutional holders toward the exits on September 16.
BlackRock’s iShares ETHA posts $110M redemption
ETHA’s single-day loss of $110.03 million made it by far the biggest contributor to that day’s selling pressure. Given the fund’s size and dominance in the US Ethereum ETF market since launch, its flows — up or down — tend to set the tone for the whole category.
Sector-wide $224 million US spot Ethereum ETF outflows
ETHA wasn’t alone in shedding assets. Fidelity’s FETH product lost $55.58 million the same day, making it the second-largest contributor to the sector’s outflow tally. BlackRock’s own staking-enabled Ethereum fund, ETHB, added another $19.76 million in redemptions. Combined, these withdrawals pushed the day’s total net outflow across US spot Ethereum ETFs to $224 million.
Bitcoin ETFs Also Experience Significant Redemptions
The retreat wasn’t confined to Ethereum. US spot Bitcoin ETFs experienced nearly $296 million in net outflows during that same session, reinforcing the idea that this was a broad, macro-driven de-risking move rather than a reaction specific to any single crypto asset.
BlackRock’s IBIT fund accounts for nearly half of $296 million Bitcoin ETF outflows
BlackRock’s Bitcoin fund, IBIT, made up $144.1 million of the total Bitcoin ETF outflows that day — roughly half of the sector’s redemption figure. That scale mirrors ETHA’s role on the Ethereum side: the largest fund in the category often drives the sharpest single-day swings, simply because of how much capital it manages.
21Shares’ TETH shows minor inflows despite broad sell-off
Not every fund bled money that day. 21Shares’ TETH managed to pull in minor inflows, standing out as a small bright spot amid an otherwise gloomy session for crypto fund flows.
Ethereum Price Gains Contradict Outflow Trends
Ethereum’s spot price actually rose 1.54% on the same day that ETF investors pulled $224 million out of the sector. That disconnect is the kind of detail that tends to confuse anyone who assumes ETF flows and price should move in lockstep. In practice, a day where fund investors sell $224 million while the underlying asset’s price still edges higher suggests that other market participants were absorbing the selling pressure, keeping the price steady even as institutional ETF holders trimmed exposure.
Cumulative Inflows Indicate Long-Term Institutional Confidence
Taking a broader view beyond that one trading day reveals a much calmer situation. After accounting for the outflows recorded on September 16, US spot Ethereum ETFs showed cumulative net inflows of roughly $13.14 billion — reflecting all the money that has entered these funds since they debuted in mid-2024, less whatever has been withdrawn along the way.
Put another way, for every dollar that left the sector on September 16, roughly $59 had come in and stayed over the product category’s lifetime. A $110 million outflow from ETHA is meaningful in isolation, but it represents a relatively small slice of the fund’s accumulated assets. That $13.14 billion base also reflects a sizable pool of institutional holders who entered at different price points over the past two years, creating a structural floor of demand that simply didn’t exist before spot Ethereum ETFs launched.
What triggered the large Ethereum and Bitcoin ETF outflows on September 16?
The Federal Reserve’s first interest rate hike in three years triggered widespread ETF outflows as institutional investors responded to the macroeconomic event.
Did Ethereum’s price fall due to the large ETF outflows?
No, Ethereum’s spot price increased by 1.54% on the same day, despite heavy ETF outflows.
Are the outflows from Ethereum ETFs indicative of long-term trends?
No, cumulative net inflows for US spot Ethereum ETFs remain strong at roughly $13.14 billion, indicating sustained long-term institutional demand.
Did all Bitcoin ETFs experience outflows on that day?
No, while most Bitcoin ETFs faced nearly $296 million in outflows, 21Shares’ TETH managed to record minor inflows.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
Source: cryptonews.net