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    Spot Ether ETFs See $197M Outflows, Second-Largest Ever

    Cryptocurrency

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    Spot Ether funds started a new week with a major sell-off, posting nearly $200 million in outflows on Monday and extending a trend that started last week.

    Spot Ether (ETH) exchange-traded funds (ETFs) saw $196.7 million of outflows on Monday, marking their second-largest daily outflows since launching. Monday’s outflows were only topped by $465 million in outflows on Aug. 4, according to SoSoValue.

    The latest outflows followed Friday’s $59 million in losses, bringing the two-day total to $256 million.

    The outflows remain modest compared to the record $3.7 billion inflow streak over the previous eight trading days, when some single-day inflows topped $1 billion.

    BlackRock’s ETHA sees $87 million in outflows

    According to Farside data, BlackRock and Fidelity saw the largest ETH ETF outflows among issuers on Monday, totaling $87 million and $79 million, respectively.

    Last Friday, Fidelity’s Ethereum Fund (FETH) alone posted $272 million in outflows, significantly contributing to the total $59 million in daily outflows.

    Proof-of-Stake, Stocks, Ether Price, Staking, Ethereum ETF, BlackRock
    Ether ETF flows by issuer. Source: Farside.co.uk

    BlackRock has become one of the largest institutional holders of Ether. According to official data for the iShares Ethereum Trust ETF (ETHA), the fund held approximately 3.6 million ETH — valued at $15.8 billion — as of last Friday.

    Since then, the dollar value of ETHA’s holdings has declined by 1.5% to $15.6 billion reported on Monday.

    BlackRock’s iShares Ethereum Trust ETF (ETHA) holdings as of Aug. 15 and the fund’s net assets as of Aug. 18. Source: BlackRock

    In this period, the ETH price has tumbled around 6.5%, according to CoinGecko.

    Ether unstaking queue repeatedly hits new highs

    The record Ether ETF outflows and turbulent ETH prices come amid the ongoing surge in Ether unstaking queue, or the amount of Ether being awaited to be withdrawn from staking pools by Ethereum validators.

    According to ValidatorQueue, a third-party website tracking the validator queues on the Ethereum proof-of-stake (PoS) network, the validator’s exit line broke an all-time high of 910,000 ETH worth approximately $3.9 billion on Tuesday.

    The data also suggests that validators now have to wait at least 15 days and 14 hours to unstake their ETH.

    Ethereum validator queue in Ether. Source: ValidatorQueue.com

    Some crypto market observers have highlighted the potentially negative outcomes of the ongoing ETH unstaking queue growth, warning of a looming “unstakening.”

    “The flippening will never happen but the unstakening is coming,” Bitcoin (BTC) advocate Samson Mow wrote on X last Thursday.

    Related: Ether trader turns $125K into $43M, locks in $7M after market downturn

    He also suggested that the price of ETH related to BTC could potentially revert to “0.03 or lower.” At the time of writing, Ether traded at 0.036 BTC, according to TradingView.

    Ether ETFs gain ground versus Bitcoin ETFs

    Spot Ether ETFs have been flipping Bitcoin ETFs in terms of inflows the past few weeks, reflecting a growing investor appetite for ETH over BTC.

    According to data by Hildobby, a data analyst at Dragonfly, the ratio of BTC supply versus BTC held in ETFs was at 6.4% as of Monday, compared to a 5% ratio for ETH and Ether ETFs.

    Source: Hildobby

    “If the current growth rate continues, the ETH-ETF will surpass the BTC-ETF in terms of the percentage of total supply contained by September,” the analyst forecasted on Monday.