Institutional demand for Ethereum has sharply declined, with exchange-traded funds (ETFs) tracking the asset registering their worst weekly performance since January. According to data from SosoValue, Ethereum ETFs saw total net outflows of $65.65 million over the past week, with no single day recording any fresh capital inflows.
The heaviest single-day outflow occurred on Tuesday, May 12, when $130.62 million exited the funds, reflecting a clear shift in sentiment. Despite intermittent price rallies during the week, these brief upticks failed to attract institutional buyers, suggesting that market hype rather than fundamental demand drove the temporary gains.
BlackRock’s Ethereum ETF, ETHA, consistently posted the highest daily outflows, yet the asset manager remained the leading player in the Ethereum ETF landscape. The sustained withdrawals indicate that institutional investors are adopting a cautious stance, unwilling to lock funds into Ethereum-based investment products amid uncertain market conditions.
