U.S. Spot Ethereum ETFs Experience Outflows Amid Broader Crypto Market Downturn, But Future Remains Bright

U.S. spot Ethereum exchange-traded funds (ETFs) experienced a net outflow of $10.9 million on Friday amid a broader crypto market downturn.

U.S. spot Ethereum exchange-traded funds (ETFs) saw a net outflow of $10.9 million on Friday, as investors withdrew funds amid a broader crypto market downturn.

Grayscale's ETHE ETF led the outflows, with $11.4 million being pulled out as investors adjusted their positions during market volatility.

However, Invesco's QETH ETF recorded a small net inflow of $0.5 million on Friday, indicating that some investors still saw opportunities in Ethereum despite the broader caution in the market. No fresh investments were reported for the other U.S. spot Ethereum ETFs.

The $10.9 million outflow comes amid recent fluctuations in cryptocurrency markets, which prompted investors to temporarily reduce their holdings. Notably, the price of Ethereum dropped to $2,467 on November 1 after trading significantly higher at $2,700 on October 30.

Bitcoin ETFs See Outflows

Similar to the U.S. Ethereum ETF market, the Bitcoin ETF segment also experienced a capital flight on Friday, with an outflow of $54.9 million being recorded after seven consecutive trading days of positive flows.

BlackRock's IBIT ETF led the outflows, with $25.6 million flowing out, followed by Bitwise's BITB ETF, which saw a record outflow of $24.1 million. Grayscale was the only institution to experience a positive flow, with $13.5 million flowing into its ETF.

Bitcoin ETFs Saw Record Inflows in October

Despite the recent outflows, data showed that U.S. Bitcoin ETFs experienced a substantial net inflow of $5.3 billion in October, marking the second-highest monthly inflow on record.

BlackRock led these inflows, adding 66,309 Bitcoin, valued at $4.6 billion, to its holdings, bringing its total to 433,713 BTC. Fidelity and Bitwise also saw net inflows of $497 million and $137 million, respectively, while ARK Invest recorded an outflow of $77 million.

Read also: Ethereum ETFs: Slow Start, But Future Bright, Says Bitwise CEO

U.S. ETFs Nearing $1 Trillion in Inflows

The broader U.S. ETF market is nearing a historic $1 trillion in annual inflows amid strong interest in crypto-based ETFs. As of October 31, U.S. ETFs were within $100 billion of breaking the previous all-time high of $910 billion.

According to Bloomberg ETF analyst Eric Balchunas, the steady daily inflow of about $4 billion could push the total to $970 billion, potentially reaching $1 trillion by year-end.

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