Ethereum ETF sounds the alarm: Assets Under Management hit a "historic low", with over $1.1 billion flowing out in seven weeks.

Ethereum-related exchange-traded fund (ETF)'s total AUM (AUM) has fallen to an all-time low while experiencing a net outflow of more than $1.1 billion over the past seven weeks, in stark contrast to the strong performance of Bitcoin ETFs. Highlighting the significant cooling of investor confidence in Ethereum-related investment products. (Synopsis: Ethereum Foundation Extinguishes Fire: Vitalik's "Go to EVM Proposal" has a big impact!) But in the end, it is up to the community to decide) (Background added: Abandoning miners to become a failure of ETH? Analysis: "Funding focus is getting lower and lower" after Ethereum switches to PoS in 2022) Ethereum faces a collapse in investor confidence, with The Block showing that as of April 18, 2025, the overall AUM of spot Ethereum ETFs has plummeted to $4.57 billion, the lowest level since the launch of these products, adding to the fact that these ETFs have seen net outflows of funds for seven consecutive weeks, with cumulative outflows of up to $1.1 billion. This trend contrasts sharply with Bitcoin ETFs, which have managed to maintain a relatively more solid AUM despite experiencing market volatility. Multiple factors hit investor confidence Among them, Grayscale's ETF converted from Ethereum Trust (ETHE) is one of the main sources of capital outflows. The analysis notes that ETHE significantly reduces its attractiveness compared to lower rates offered by competitors such as BlackRock (e.g., 0.25%). Many investors choose to transfer their funds to lower-cost similar products after the mandatory lock-up period ends, resulting in ETHE facing a large number of redemptions. This situation is similar to that of Grayscale's Bitcoin Trust GBTC experiencing a large outflow of funds after converting to ETF. The reasons for the massive outflow of Ethereum ETF funds are complex and diverse, and in addition to rate competition, regulatory uncertainty, market performance, and competitive landscape all play an important role. Staking Uncertainty The U.S. Securities and Exchange Commission's (SEC) cautious and possibly delayed approach to approving the inclusion of "staking" earnings in Ethereum ETFs removes a potential source of income that is highly attractive to many investors. Unlike holding Ether directly, which allows you to participate in staking and receive rewards, ETFs that lack this feature naturally make them less attractive. In addition, Ethereum's own controversy and market performance may also affect investor sentiment, and the weakness of the bitcoin exchange rate (ETH/BTC) may disappoint some investors. At the same time, concerns about Ethereum's scalability, competition from other Layer 1 public chains, and future upgrade roadmaps may also reduce its short-term investment attractiveness. In addition, broader macroeconomic factors and market risk aversion may also prompt investors to reduce their holdings of risky assets, including Ethereum ETFs. The blood sucking of altcoin ETFs The continued gold outflows and record low AUM of Ethereum ETFs actually reflect the financial market, which may also have a material impact on the market, while another potential risk is that as more ETF applications for other cryptocurrencies (such as SOL, XRP, LTC, etc.) are submitted or approved, it may further diversify the capital allocation of institutional investors. The "fragmentation" of this product may make it difficult for a single altcoin ETF to reach a sufficiently large AUM size, reducing its attractiveness to large institutional portfolios, creating a vicious circle. In the coming months, the US SEC's final decision on spot Ethereum ETFs, especially those that include a staking component, will be the focus of the market's attention. If regulatory uncertainty persists or even turns negative, it could further undermine investor confidence. Conversely, positive regulatory developments could reverse the current trend of capital outflows. In the short term, however, the challenges facing Ethereum ETFs are real and severe. Ethereum may pull back All in all, the record low AUM and continuous large-scale outflows experienced by Ethereum ETFs recently are a market signal that cannot be ignored, which indicates that the value of Ethereum may be overvalued from the perspective of mature market funds, and whether the recent Pectra upgrade initiated by Ethereum and the "RISC-V" reform initiated by V God can meet the needs of the market and the community, but technological updates and impression subversion still require a very long squatting period. Short-term Ethereum actions have a very limited impact on ETFs and coin prices. Related reports A single family is so big that it makes enemies on all sides, is Ethereum okay? Ethereum falls back five years ago! "ETH/BTC" fell below 0.02 to hit a new low since 2020, and the community FUD has not stopped Paradigm CTO fever Ethereum needs a new language, Sui founder hits back: Solidity and EVM 2018 have problems "Ethereum ETF rings alarm bells: AUM "hits a record low", with an outflow of more than $1.1 billion in seven weeks" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".