Ethereum exchange-traded funds (ETFs) ended August on a shaky note, losing $164 million in a single day as ETH’s price dipped during a broader crypto market pullback. While August overall was positive for these funds, the sudden reversal has left many investors wondering what comes next for ETH.
A Sudden Turn After Weeks of Gains
Ethereum ETFs had been enjoying consistent inflows throughout much of August. In fact, from August 21 to August 28, they saw nearly $1.9 billion enter the market. But on August 29, the streak ended with $164.64 million in net outflows, according to SoSo Value data.
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Grayscale ETH Fund (ETHE): $61.3 million outflow
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Grayscale ETH Trust (ETH): $28.64 million outflow
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Fidelity ETH Fund: $51.02 million outflow
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Bitwise ETH Fund: $23.68 million outflow
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BlackRock & others: No inflows recorded
This decline matched a similar trend in Bitcoin ETFs, which also suffered $126 million in outflows on the same day.
How August Looked Overall for ETH ETFs
Despite the late dip, Ethereum ETFs still had a net inflow of $3.87 billion in August. However, this was lower than July’s $5.5 billion inflow, which means investor enthusiasm has cooled slightly.
One big reason for August’s profit-taking? Ethereum’s price surge. ETH climbed to a new all-time high (ATH) of $4,953 on August 24, capping off a three-month rally where the token gained over 73% in 90 days and 15% in just one month. When prices hit record highs, many investors lock in profits, which often triggers outflows from ETFs.
Ethereum Treasury Holdings Keep Growing
Interestingly, while ETF flows turned negative, Ethereum treasury companies have been quietly increasing their ETH holdings. According to Strategic ETH Reserve data:
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Treasuries now hold 4.44 million ETH, worth around $19.34 billion.
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That represents 3.67% of Ethereum’s total supply.
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For the first time, ETH treasuries are buying more ETH than Bitcoin treasuries are buying BTC.
This suggests that long-term institutions still see strong value in Ethereum, regardless of short-term ETF outflows.
Bitcoin Whale Shifts Billions Into Ethereum
Another fascinating development comes from the on-chain world. A long-time Bitcoin whale has started converting large amounts of BTC into ETH.
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According to Lookonchain, the whale recently deposited 2,000 BTC ($217M) on Hyperliquid to buy Ethereum.
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Just last week, the same wallet moved over $1 billion in BTC and converted it into ETH.
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So far, this whale has accumulated 691,358 ETH (worth nearly $3B).
Analysts believe this aggressive buying spree is based on the expectation of an altcoin season, with Ethereum likely leading the way. The upcoming September FOMC meeting—where the Federal Reserve may cut rates -could provide further momentum for ETH and other altcoins.
What This Means for Investors
The recent ETF outflows might look concerning, but they don’t necessarily signal weakness in Ethereum. Instead, they highlight short-term profit-taking after a big rally. Long-term signs remain positive, especially with:
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Treasury companies increasing ETH reserves.
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Whales shifting billions into Ethereum.
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The potential of a Fed rate cut boosting altcoins.
For everyday investors, it’s worth watching whether ETH can hold key price levels around $4,300 and reclaim its ATH in the coming weeks.
Final Thoughts
Ethereum ETFs may have stumbled at the end of August, but the bigger picture shows resilience. With institutional players accumulating ETH and strong fundamentals backing the network, Ethereum’s long-term outlook remains promising. If the Fed follows through with easing monetary policy in September, ETH could get the push it needs to fuel another rally.
FAQs
1. Why did Ethereum ETFs record $164 million in outflows?
The outflows came mainly from profit-taking after ETH hit a new all-time high of $4,953. Investors often cash out when prices reach record levels.
2. Did Ethereum ETFs still perform well in August?
Yes. Despite the late pullback, they saw $3.87 billion in net inflows in August, showing strong overall demand.
3. Why are treasury companies buying more ETH?
Treasury data shows companies see Ethereum as a long-term asset. They now hold 4.44 million ETH, more than Bitcoin treasuries hold in BTC.
4. Who is the Bitcoin whale buying ETH?
On-chain data points to an old Bitcoin wallet that recently converted billions in BTC into ETH, likely betting on Ethereum’s dominance in the next altcoin cycle.
5. How could the Fed’s rate decision affect ETH?
If the Federal Reserve cuts rates in September, it could increase liquidity in the market, boosting Ethereum and other altcoins as investors seek higher returns in crypto.