Ethereum ETFs: A $429 Million Exodus
In a surprising turn of events, Ethereum ETFs witnessed a massive outflow of $428.5 million on October 13th, marking the largest single-day withdrawal since early September. BlackRock's ETHA took the lead in this exodus, with a staggering $310.1 million leaving the fund.
But here's where it gets controversial... This retreat follows a week of significant net inflows, totaling $488 million, as part of a broader crypto surge worth $3.17 billion. So, what caused this sudden change of heart?
Experts point to President Trump's tariff announcement on Friday, which triggered a historic crypto liquidation event. An estimated $19-30 billion in leveraged positions were wiped out within a day, sending shockwaves through the market.
Illia Otychenko, Lead Analyst at CEX.IO, describes Monday's outflows as "aftershocks" from the tariff-driven selloff. The market sentiment has shifted to a defensive mode, with investors adopting a cautious approach.
Dean Chen, an analyst at Bitnunix, offers a different perspective. He believes the recent withdrawals are a "macro reflex" and not an indication of deeper weakness. Chen highlights that institutional positioning remains intact, with a substantial $488 million in ETH ETF inflows the week before.
However, Chen warns that if outflows persist over the next few sessions, it could signal a more significant repositioning. "The coming days will reveal if this was a temporary tremor or the beginning of a substantial rotation," he adds.
Despite the fluctuations, Ethereum's fundamentals remain "relatively strong," according to Otychenko. The lowest leverage ratio since May suggests a healthier setup for recovery, even as the market stabilizes.
"Ether registered bullish divergences on key indicators like the daily RSI and MACD, indicating buying momentum is increasing post-selloff. This could provide short-term support for price action," Otychenko explains.
On Myriad, a prediction markets platform, users predict a low chance (8%) of the Crypto Fear and Greed Index reaching the Greed level (55 or above) by Wednesday.
So, is this a passing storm or the start of a deeper shift in investor sentiment? The coming days will be crucial in determining Ethereum's trajectory. What do you think? Join the discussion and share your thoughts in the comments!
