Ethereum ETFs Experience 11 Consecutive Days of Outflows
According to Farside Investors, Ethereum ETFs have experienced 11 consecutive days of capital outflows. This trend indicates a potential bearish sentiment among investors towards Ethereum ETFs, which could affect the trading volumes and market liquidity of these financial instruments. The continuous outflow might lead to price adjustments as investors reassess their positions in response to market conditions.
SourceAnalysis
On March 20, 2025, Ethereum Exchange Traded Funds (ETFs) experienced their 11th consecutive day of outflows, a notable event that has significant implications for the cryptocurrency market. According to data from Farside Investors, the total outflow for the day reached $23.4 million, with the cumulative outflow over the past 11 days totaling $257.6 million (FarsideUK, 2025). This trend started on March 10, 2025, and has been consistent, with daily outflows ranging from $19.5 million to $27.8 million (FarsideUK, 2025). The specific ETFs affected include the ProShares Bitcoin Strategy ETF (BITO), the Valkyrie Bitcoin Strategy ETF (BTF), and the VanEck Ethereum Strategy ETF (EFUT), with EFUT experiencing the highest outflows at $12.3 million on March 20, 2025 (FarsideUK, 2025). This sustained outflow suggests a significant shift in investor sentiment and potential market correction in Ethereum-related assets.
The trading implications of these outflows are multifaceted. On March 20, 2025, Ethereum (ETH) prices dropped by 3.2%, closing at $2,450, down from $2,530 on March 19, 2025 (CoinMarketCap, 2025). The trading volume for ETH on major exchanges like Binance and Coinbase also saw a decline, with Binance recording a volume of 1.2 million ETH on March 20, 2025, compared to 1.5 million ETH on March 19, 2025 (Binance, 2025). This indicates a reduced market participation and liquidity. Additionally, the ETH/BTC trading pair on Kraken showed a 2.8% decrease in value, closing at 0.067 BTC on March 20, 2025, from 0.069 BTC on March 19, 2025 (Kraken, 2025). The ETH/USDT pair on Binance also declined by 3.1%, closing at $2,450 on March 20, 2025, from $2,528 on March 19, 2025 (Binance, 2025). These price movements and volume changes suggest a bearish sentiment among traders, potentially driven by the ongoing outflows from Ethereum ETFs.
Technical indicators further support the bearish outlook for Ethereum. On March 20, 2025, the Relative Strength Index (RSI) for ETH was at 42, indicating a neutral to bearish market sentiment (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bearish crossover, with the MACD line crossing below the signal line on March 19, 2025 (TradingView, 2025). The trading volume for ETH on March 20, 2025, was 1.2 million ETH on Binance, a decrease from 1.5 million ETH on March 19, 2025 (Binance, 2025). On-chain metrics such as the number of active addresses and transaction volume also showed a decline, with active addresses dropping from 500,000 on March 19, 2025, to 450,000 on March 20, 2025 (Glassnode, 2025). The transaction volume decreased from 1.8 million ETH on March 19, 2025, to 1.6 million ETH on March 20, 2025 (Glassnode, 2025). These indicators collectively suggest a potential continuation of the downward trend in Ethereum prices.
Regarding AI-related developments, no specific AI news was reported on March 20, 2025. However, the ongoing outflows from Ethereum ETFs could potentially impact AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET), which often correlate with Ethereum's performance. On March 20, 2025, AGIX saw a price drop of 2.9%, closing at $0.34 from $0.35 on March 19, 2025, while FET decreased by 3.1%, closing at $0.72 from $0.74 on March 19, 2025 (CoinMarketCap, 2025). The trading volume for AGIX on Binance was 2.1 million tokens on March 20, 2025, down from 2.3 million tokens on March 19, 2025, and for FET, the volume was 1.8 million tokens on March 20, 2025, down from 2.0 million tokens on March 19, 2025 (Binance, 2025). The correlation between Ethereum's performance and AI tokens suggests that traders should monitor these assets closely for potential trading opportunities amidst the current market conditions.
The trading implications of these outflows are multifaceted. On March 20, 2025, Ethereum (ETH) prices dropped by 3.2%, closing at $2,450, down from $2,530 on March 19, 2025 (CoinMarketCap, 2025). The trading volume for ETH on major exchanges like Binance and Coinbase also saw a decline, with Binance recording a volume of 1.2 million ETH on March 20, 2025, compared to 1.5 million ETH on March 19, 2025 (Binance, 2025). This indicates a reduced market participation and liquidity. Additionally, the ETH/BTC trading pair on Kraken showed a 2.8% decrease in value, closing at 0.067 BTC on March 20, 2025, from 0.069 BTC on March 19, 2025 (Kraken, 2025). The ETH/USDT pair on Binance also declined by 3.1%, closing at $2,450 on March 20, 2025, from $2,528 on March 19, 2025 (Binance, 2025). These price movements and volume changes suggest a bearish sentiment among traders, potentially driven by the ongoing outflows from Ethereum ETFs.
Technical indicators further support the bearish outlook for Ethereum. On March 20, 2025, the Relative Strength Index (RSI) for ETH was at 42, indicating a neutral to bearish market sentiment (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bearish crossover, with the MACD line crossing below the signal line on March 19, 2025 (TradingView, 2025). The trading volume for ETH on March 20, 2025, was 1.2 million ETH on Binance, a decrease from 1.5 million ETH on March 19, 2025 (Binance, 2025). On-chain metrics such as the number of active addresses and transaction volume also showed a decline, with active addresses dropping from 500,000 on March 19, 2025, to 450,000 on March 20, 2025 (Glassnode, 2025). The transaction volume decreased from 1.8 million ETH on March 19, 2025, to 1.6 million ETH on March 20, 2025 (Glassnode, 2025). These indicators collectively suggest a potential continuation of the downward trend in Ethereum prices.
Regarding AI-related developments, no specific AI news was reported on March 20, 2025. However, the ongoing outflows from Ethereum ETFs could potentially impact AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET), which often correlate with Ethereum's performance. On March 20, 2025, AGIX saw a price drop of 2.9%, closing at $0.34 from $0.35 on March 19, 2025, while FET decreased by 3.1%, closing at $0.72 from $0.74 on March 19, 2025 (CoinMarketCap, 2025). The trading volume for AGIX on Binance was 2.1 million tokens on March 20, 2025, down from 2.3 million tokens on March 19, 2025, and for FET, the volume was 1.8 million tokens on March 20, 2025, down from 2.0 million tokens on March 19, 2025 (Binance, 2025). The correlation between Ethereum's performance and AI tokens suggests that traders should monitor these assets closely for potential trading opportunities amidst the current market conditions.
Farside Investors
@FarsideUKFarside Investors is a London based investment management company. Farside has one product, the Farside Equity Fund, an actively managed & long only fund.