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TLDR
Crypto ETFs experienced a 27% decline in trading volumes in early September.
Ether funds saw the largest losses, shedding $912 million in a single week.
Bitcoin crypto ETFs received $524 million in inflows, offsetting broader market weakness.
The US market recorded $440 million in outflows from crypto ETFs last week.
Germany saw a rise in crypto ETF inflows, totaling $85 million during the same period.
Publicly traded crypto ETFs experienced a downturn in early September, with trading volumes dropping by 27%. The decline led to $352 million in outflows over the past week, according to CoinShares. Despite a positive outlook for risk assets after a weak US jobs report, crypto ETFs saw reduced demand.
US Crypto ETFs Experience $440 Million Outflows
Ether-focused crypto ETFs suffered the most significant losses in early September, shedding $912 million in just one week. The decline indicates waning investor interest in Ether amid broader market weakness. CoinShares analysts noted that trading volumes fell by 27%, suggesting mainstream investors are losing appetite for cryptocurrencies.
Despite the drop in Ether funds, Bitcoin crypto ETFs saw a more favorable outcome. Bitcoin-related funds received $524 million in inflows, offsetting some of the broader market weakness. Analysts believe this shift reflects growing demand for Bitcoin amid lower enthusiasm for Ether.
Crypto ETFs listed in the US saw substantial outflows last week, with $440 million leaving the market. In contrast, Germany saw a rise in inflows, totaling $85 million. This difference highlights varying investor sentiment across regions and a potential shift in crypto investment preferences.
Publicly traded crypto ETFs provide exposure to digital assets without the need to directly buy cryptocurrencies. They package crypto tokens into shares that track the underlying price, allowing mainstream investors to participate in the market. Despite recent outflows, CoinShares reported that the growth in inflows for crypto ETFs in 2025 is still ahead of last year’s performance.
ETH ETFs Experience Profit-Taking Phase
Jillian Friedman, COO of crypto staking protocol Symbiotic, said that profit-taking near all-time highs (ATHs) is likely driving the cooling demand for ETH ETFs. “ETH ETFs are risk-asset plays, and macroeconomic factors are likely influencing the slowdown,” she stated. U.S. spot ETH ETFs now hold around $26 billion in assets under management, with BlackRock’s ETHA controlling over $16 billion.
Vincent Liu, CIO of Kronos Research, added that Ethereum is entering a period of profit-taking. He noted that the influx of capital into Bitcoin ETFs shows a preference for hard assets like gold. This behavior aligns with increasing macroeconomic uncertainty, pushing investors to safer investments such as Bitcoin.