The Ethereum ETF lost $505 million in just four days amid profit and economic uncertainty. Bitcoin ETF has won $284 million, indicating a shift towards safer crypto assets that are perceived. Analysts warn that volatility could continue, but Ethereum’s long-term foundations remain strong.
The Ethereum ETFS hit abruptly, losing $505 million in just four days. The pullback follows a strong third rally, when inflows and prices were reaching new highs, but investors suddenly put the brakes on.
Economic uncertainty and increased profits appear to lie behind the sudden flight.
In contrast, Bitcoin ETFs draw $284 million on the same stretch, indicating that investors are still hungry for crypto exposure, but not all cryptos are treated equally.
For Ethereum, it mixes strong demand and high volatility, giving traders the edge.
Ethereum ETF inflows rise and fall
Ethereum ETFS rode a fierce wave in the third quarter of 2025, drawing in net inflows of over $33 billion.
Surges were facilitated by mixing of factors. The post-merging deflationary supply model, attractive staking legs, averages 4.5% per year, an increase in adoption of Layer 2 solutions, including Dencon upgrades.
Institutional demand doubled in just six weeks, pushing Ethereum prices up from around $2,500 in mid-July to a peak of $4,744 by late August.
The influx of ETFs is closely linked to the assembly, showing a 62% correlation with price movements.
The Ethereum rally came into trouble in early September. On Tuesday, investors withdraw $135.3 million from the Ethereum ETF and moved to the Bitcoin ETF.
The shift reduced Ethereum prices to $4,209, down more than 10% from mid-August.
Drop highlights short-term attention, despite the continued evolution of the Ethereum ecosystem and the long-term growth narrative is on track.
What Analysts Say: Beware of Volatility
Marketwatchers see the recent ETF spill as a typical cooldown after a frenzy of rally, but warn that volatility could remain.
Analysts emphasize that rather than losing confidence in the fundamentals of Ethereum, the outflow is driven by gaining more profits through profits and risk management.
As Ethereum ETFs still hold about 5% of the supply, institutional interest remains solid, supported by increased compensation, layer 2 adoption and custody demand.
The front and rear between Ethereum and Bitcoin ETFs show just how unstable the jittery investors are.
Bitcoin was raked up for $283.7 million, while Ethereum saw the money go, but clear sign traders are leaning towards what they consider safer with increased inflation and policy concerns.
The chart shows short-term hesitation, but the actual test is whether Ethereum can continue to climb above $4,550.
Now everyone is looking at headline economic data, regulations and ETFs to get clues on their next move.
If Ethereum finds its scaffolding, the leak can quickly reverse and strengthen its position as the top crypto, but in this volatile stretch it is still the name of the game.
