According to the latest data from crypto exchange-traded fund (ETF) tracker SoSoValue, Ethereum ETFs saw about $643 million in outflows for the week ending December 19. The high capital outflow from ETF ETFs has raised concerns about waning demand for the cryptocurrency.
Ethereum ETFs see $643 million in outflow
The crypto market is not having the kind of yearly close many in the industry would have hoped for. Compared to January 2025 – when ETH was trading in the mid $3,000 level – the cryptocurrency is now struggling to stay above support at $2,800.
A key driver of ETH’s weakening momentum is the capital flight from spot ETFs. Notably, BlackRock’s Ethereum ETF led the charge, witnessing $467 million worth of outflows.
BlackRock’s ETHA was followed by Grayscale ETHE which recorded outflows to the tune of $49 million. Similarly, Fidelity’s FETH saw $35 million in outflows.
The high capital outflow of $643 million indicates the reduced appetite for ETH among institutional investors as the global macroeconomic fabric becomes increasingly uncertain. Recently, the Bank of Japan hiked lending rates to the highest level since 1999.
As a result, Japan’s bond markets saw rising yields as they surged above 2%, the highest since 1995. A higher yield offered on bonds usually signifies less cheap liquidity, which can hurt risk-on assets, including ETH.
ETH key support level at risk
Besides the tepid institutional demand for ETH, on-chain metrics also suggest that user activity on the leading smart contract platform is on a downtrend. Data from Token Terminal shows that both Ethereum fees and revenue are at their lowest level over the past year.
On the bright side, however, the total value locked in the Ethereum ecosystem is slightly above what it was at the beginning of the year. At the time of writing, the figure stands at close to $330 billion.
In the same vein, the number of active weekly addresses on the blockchain is hovering around 2.5 million, slightly above the 2 million figure seen earlier this year on January 6.
That said, these positive metrics must translate into higher demand for ETH, or it may risk losing its critical support level around $2,800. If this support level is also lost, the next support lies all the way down at $2,300.
