Ethereum ETF flows reverse sharply
Spot Ethereum ETFs have remained a major focus for investors throughout 2026.
Earlier in May, Ethereum benefited from strong ETF demand as institutional investors increased exposure. ETF products recorded significant inflows during April and early May, helping Ether break above key resistance levels around $2,400. BlackRock’s ETHA and Fidelity’s FETH were among the leading beneficiaries of these inflows.
However, the trend reversed dramatically during the latter half of May.
Ethereum ETF products experienced substantial outflows as investors reduced exposure to risk assets amid rising Treasury yields, geopolitical uncertainty and concerns that interest rates may remain elevated for longer. Some estimates suggest US spot Ethereum ETFs recorded more than $2.4 billion of cumulative net outflows during May, marking one of the weakest months since the products launched.
Other market data indicates Ethereum ETFs suffered more than $400 million of net outflows during the final weeks of May alone, breaking the positive momentum that had supported the earlier recovery.
The contrast with Bitcoin has become increasingly apparent. While both cryptocurrencies have experienced ETF withdrawals in recent weeks, institutional flows continue to favour Bitcoin, contributing to Ethereum’s relative underperformance against its larger rival, until early June, when this trend suddenly seems to have reversed.
Nevertheless, ETF products remain an important long-term structural driver for Ethereum. As with Bitcoin ETFs, issuers must hold underlying Ether to support newly issued shares, creating a direct link between institutional demand and market supply.