In recent weeks, U.S. exchange-traded funds (ETFs) linked to ether (ETH) have experienced a significant downturn, with net outflows totaling $401 million in March alone. This trend has effectively erased the gains made during the first two months of the year, demonstrating the volatility inherent in the cryptocurrency market.
According to data from SoSoValue, these redemptions account for nearly 6% of the $6.77 billion in total assets held by spot ether ETFs. Notably, only one day in March—March 4—saw positive inflows, amounting to $14.58 million. In contrast, January and February proved to be stronger months for ether ETFs, with inflows reaching $101 million and $60 million, respectively.
Similarly, spot bitcoin ETFs have not been immune to withdrawals, with net outflows of $893 million reported this month. However, this figure represents only about 0.9% of the approximately $94.35 billion under management, which positions bitcoin funds as more resilient in comparison. Despite the current withdrawals, bitcoin remains net positive for the year, buoyed by an impressive $5.25 billion inflow in January.
The performance metrics tell a compelling story. Since March 1, the price of ether has decreased by approximately 8.5%, landing at around $2,080. In contrast, bitcoin has experienced a modest gain of over 3%, with its current price hovering around $87,300. Additionally, the broader CoinDesk 20 Index has seen a decline of 21% in this same timeframe.
Despite the recent downturn, ether ETFs have still accumulated a net inflow of $2.42 billion since their inception. However, this amount pales in comparison to the staggering $36.05 billion that bitcoin ETFs have attracted, underscoring a notable divergence in investor interest between these two prominent digital assets.
As the market continues to evolve, stakeholders in the crypto space must remain vigilant and informed, recognizing the trends that drive investor sentiment and the overall performance of these assets.
