Ether ETFs see $796M in outflows amid a 10% price drop, marking a week of declines as retail participation weakens.
Spot Ether exchange-traded funds (ETFs) have seen five consecutive days of net outflows, totaling $795.8 million for the week. This marks a significant trend as Ether’s price has fallen by 10% over the past seven days. These outflows coincide with a broader weakening of retail participation in the asset.
Continued Outflows for Spot Ether ETFs
US-based spot Ether ETFs experienced a dramatic $248.4 million in outflows on Friday alone, bringing total weekly outflows to $795.8 million according to Farside data. This marks the fifth straight day of outflows, a sign that investors are pulling money out of these products.
The last time such a trend occurred was during the week ending September 5, when Ether was trading at higher levels, around $4,300.
During this period, the ETH price fell 0.6%, settling at $4,026. Over the past seven days, Ether value has dropped by 10.25%. Analysts point to growing retail sell-side pressure as a factor behind both the outflows and price drop.
Retail Participation Declines Amid Price Drop
Recent data from Binance shows that net taker volume for Ether has remained negative, signaling weak retail participation. This ongoing sell-side pressure from retail investors may be contributing to the recent price drops and continued outflows from spot Ether ETFs.
Retail participation in Ethereum has been weaker in the past month, which is evident in the outflow trend seen across these ETFs.
$ETH ETFs just recorded its biggest weekly outflow ever.
This is a sign of capitulation as the panic selling has been so high.
Do you think $3,750 was the bottom for ETH? pic.twitter.com/DRjlSSOKJC
— BitBull (@AkaBull_) September 27, 2025
Crypto analyst Bitbull described the ongoing outflow trend as a “sign of capitulation,” indicating that investors may be selling due to panic amid the price decline. The pressure on retail investors could be an early indicator of more significant changes in market sentiment for Ether.
Anticipation of Staking Approval for Ether ETFs
Amid the continued outflows, anticipation remains high regarding the potential approval of staking within spot Ethereum ETFs.
On September 19, reports indicated that Grayscale, a major player in the cryptocurrency investment space, is preparing to stake part of its Ether holdings. This move signals growing confidence that US regulators may soon approve staking as part of the exchange-traded product structure.
If staking is approved, it could be a turning point for Ether ETFs, offering new ways to engage with Ether beyond simple price speculation. Investors are waiting to see how this development may change the ETF landscape, especially for products tied to Ethereum.
As the market waits for updates from regulators and continues to respond to declining prices, it is clear that Ether ETFs are facing challenging conditions. Hence, these developments are prompting many investors to reconsider their strategies and wait for the potential approval of staking features within the product structure.
