US Ethereum ETFs Witness Record Capital Outflow of $465 Million Led by BlackRock, Despite On-Chain Data Showing Institutional Accumulation.
After an impressive 20-session capital inflow, US Spot Ethereum (ETH) ETFs recorded a strong sell-off with the highest net capital withdrawal to date. According to data from investment research firm Farside, total capital outflow from these funds reached $465 million in Monday's trading session, marking the second consecutive net withdrawal and ending a positive momentum that lasted a month.
This sudden capital withdrawal occurred right after July's explosive month, when the entire fund group attracted a net capital inflow of $5.43 billion, indicating that some investors are taking profits after the significant price increase of the underlying asset.
This sell-off occurred simultaneously with ETH's price correction, as the digital currency dropped 12% from near $3,858 to $3,380 before recovering. Detailed capital flow analysis shows BlackRock's iShares Ethereum Trust (ETHA) was most heavily impacted, accounting for nearly $375 million of the total net withdrawal. Fidelity Ethereum Fund (FETH) ranked second with $55.11 million withdrawn.
Nevertheless, ETHA still maintains total managed assets of $10.7 billion, demonstrating the significant scale this product has established in a short time since its launch.
However, on-chain data paints a completely different picture. While ETF capital is flowing out, large investors and financial institutions see this as an accumulation opportunity. Blockchain analysis company Lookonchain reports that in just one day, three large wallets identified as belonging to institutions bought 63,837 ETH through over-the-counter (OTC) trades, equivalent to $236 million.
This activity is not an isolated phenomenon. Lookonchain has tracked 14 new wallets accumulating over 856,000 ETH (valued at more than $3.1 billion) since the beginning of July. The clear divergence between ETF capital flow and on-chain activity reflects an increasingly stratified market by investment strategy.
