Spot Ether ETFs Shed $952M Over 5 Days as Recession Fears Grow

Spot ether exchange-traded funds (ETFs) logged their fifth straight day of outflows this week, shedding $952 million in total and over $787 million in the four-day week alone. The withdrawals followed a record-setting August when spot ether ETFs pulled in $3.87 billion even as bitcoin ETFs saw $751 million in net outflows, according to SoSoValue data. Friday accounted for the sharpest decline, with $446.71 million leaving these ETH-linked funds. Spot bitcoin ETFs, in contrast, posted $246.4 million in net inflows over the past week. The contrast is notable, as funds investing in the flagship cryptocurrency saw $751.1 million in net outflows last month. Ether has climbed more than 16% over the past month, though it slipped 1.8% in the last week now trading just below $4,300. The cryptocurrency has been benefitting from the GENIUS Act passing into law , which restricted stablecoin issuers from paying interest and provided clarity which could lead to greater institutional investment. Its recent drawdown is likely related to a broader return from risk assets. That came after weak U.S. jobs data furthered expectations the Federal Reserve will cut interest rates later this month, along with growing fears of a recession . Traders are now weighing an 89% chance of a 25 bps rate cut, and an 11% chance of a 50 bps cut according to the CME’s FedWatch tool.On Polymarket , odds of a 50 bps rate cut are at 12%. The cooling data , coupled with growing concerns surrounding economic uncertainty and geopolitical risks, has also seen the price of gold top the $3,600 mark for the first time.