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Exchange-traded funds (ETFs) linked to Ethereum experienced a surge in redemptions on September 5 in the world’s largest economy, with investors withdrawing over $444 million. When the funds were first launched in July 2024, the sell-off was the second-largest outflow.

Investor interest in Ethereum (ETH) has significantly shifted, as indicated by recent data. BlackRock’s Ethereum Strategy ETF (ETHA) accounted for the majority of the outflows, losing $308 million, which represents nearly 70% of the total withdrawals for the day, according to SoSo Value data. Additionally, Grayscale’s two funds experienced combined withdrawals exceeding $80 million, while Fidelity’s ETF (FETH) saw a loss of $38 million.

The 21Shares CETH reported withdrawals totaling approximately $14.68 million. As a result, the five-day capital outflow that began on August 29 continued with redemptions on September 5. Overall, Ethereum ETFs lost more than $952 million during this period, marking the largest weekly withdrawal for the nine funds since their inception.

According to CryptoQuant analyst JA Maarturn, net taker volume shifted notably to the sell side, with sellers outnumbering buyers in ETH futures by $570 million. Such heavy selling has historically happened near local market tops, supporting the idea that traders are shielding themselves from further declines.

However, despite short-term volatility, Ethereum’s long-term outlook remains strongly supported by its main advocates. Co-founder of Ethereum Joseph Lubin recently reaffirmed that ETH’s potential exceeds its current valuation. He predicted that the asset would eventually surpass “the Bitcoin/BTC monetary base” and increase by 100 times. Ultimately, Lubin believes Wall Street firms will incorporate Ethereum into their core operations, including staking.