Spot ether exchange-traded funds (ETFs) have experienced their fifth consecutive day of outflows this week, with a total of $952 million being withdrawn, including over $787 million in just the past four days. This trend comes after a record-setting August, during which spot ether ETFs attracted $3.87 billion in investments, while bitcoin ETFs saw net outflows of $751 million, as reported by SoSoValue data.
The most significant outflow occurred on Friday, with $446.71 million exiting these ETH-linked funds. In contrast, spot bitcoin ETFs saw $246.4 million in net inflows over the past week. This divergence is noteworthy, considering that bitcoin ETFs experienced $751.1 million in net outflows the previous month.
Despite a 16% increase in value over the past month, ether experienced a 1.8% decline in the last week, currently trading just below $4,300. The cryptocurrency’s recent performance has been bolstered by the passing of the GENIUS Act, which imposed restrictions on stablecoin issuers from offering interest and provided regulatory clarity that could attract more institutional investors.
The recent pullback in ether’s price can be attributed to a broader market retreat from risk assets. This shift follows weak U.S. jobs data that has heightened expectations of an interest rate cut by the Federal Reserve later this month, coupled with mounting concerns about a looming recession.
Market analysts are now assessing an 89% probability of a 25 basis points rate cut, with an 11% chance of a more aggressive 50 basis points cut, according to the CME’s FedWatch tool. Meanwhile, on Polymarket, the odds of a 50 basis points rate cut stand at 12%.
The growing economic uncertainty and geopolitical risks have also propelled the price of gold to surpass the $3,600 mark for the first time. Investors are seeking safe-haven assets amid the prevailing market volatility and are closely monitoring developments in the global economy.