Recession Concerns Trigger $952M Exodus From Spot Ether ETFs in Under a Week

Spot Ether ETFs Post $952M Outflows as Risk Sentiment Weakens

Ether exchange-traded funds (ETFs) notched a fifth straight day of redemptions this week, with investors pulling a total of $952 million, including $787 million during the shortened four-day session, according to SoSoValue data.

The heaviest withdrawals came Friday, when $446.7 million exited ETH-linked products. The moves mark a sharp contrast to August, when spot ether ETFs drew $3.87 billion in inflows while bitcoin ETFs lost $751 million. Over the past week, spot bitcoin ETFs swung back to gains, collecting $246.4 million in net inflows.

Despite the redemptions, ether (ETH) has climbed more than 16% over the past month, supported by the passage of the GENIUS Act. The legislation bars stablecoin issuers from paying interest and adds regulatory clarity that could encourage institutional adoption. ETH is currently trading just under $4,300, down 1.8% over the past week.

Analysts attribute the latest outflows to broader risk aversion, as soft U.S. labor data reinforced expectations of Federal Reserve easing later this month and reignited recession concerns. Traders are now pricing an 89% chance of a 25-basis-point cut and an 11% chance of a 50-point move, with Polymarket odds putting the larger cut at 12%.

The shift in sentiment has also fueled safe-haven demand, with gold surpassing $3,600 per ounce for the first time as investors position cautiously against economic and geopolitical uncertainty.