Ethereum Spot ETFs Lose $100M Amid Declining Interest
Key Takeaways
The Ethereum (ETH) spot ETFs in the U.S. recorded another outflow of $35.89 million on March 6. This marked the second consecutive day of significant capital outflows, bringing total losses over the past two days to $100 million. For the past two weeks, investors have been increasingly withdrawing funds from these products, which could be due to changing market conditions and a decline in returns from CME ETH basis trading.
Decline in ETH ETF Inflows
In February, ETH ETFs saw higher inflows than Bitcoin (BTC) ETFs. Analysts at Coinbase attributed this to the previously attractive returns from the so-called CME ETH basis trading. In this strategy, institutional investors purchase ETH ETFs while simultaneously opening a short position on CME futures to profit from the price difference.
By the end of February, the return on this strategy was 8%, leading to strong capital inflows into ETH ETFs. However, in March, the return dropped to 6%, which may have reduced interest in this strategy.
Declining Open Interest in CME Futures
Another indication of waning interest in ETH ETFs is the decline in open interest (OI) in ETH futures on the Chicago Mercantile Exchange (CME). Open interest represents the number of outstanding futures contracts. Since January 2025, this figure has fallen from $3.18 billion to $2.15 billion in March. This suggests that some market participants are closing their positions or becoming less active in this type of trading.
Weak Market Conditions Weigh on Ethereum
In addition to structural changes in the ETF market, Ethereum is also suffering from generally weak market sentiment. Ongoing economic uncertainties, including U.S. trade conflicts, have reduced the risk appetite of many investors.
From a technical perspective, ETH is at a critical support zone above $2,000. If this level is breached, the long-term market structure could shift, further dampening trader interest.
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Our Assessment
The recent capital outflows from ETH ETFs indicate a shift in market dynamics. The declining returns from basis trading and the decreasing open interest in CME futures suggest that institutional investors currently have less interest in Ethereum. At the same time, overall market sentiment remains tense, adding further pressure to the ETH price.
Whether this trend continues will largely depend on future return developments and overall market risk appetite. Investors should closely monitor technical support levels and macroeconomic factors.
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $2,143.30 |
| 24h % | 0.38 % |
| 7d % | -4.66 % |
| 30d % | -21.89 % |
| 60d % | -36.26 % |
| 1y % | -45.29 % |
| Market Cap | $258,162,699,435.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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