Ethereum ETFs Suffer $207M Weekly Outflow
Investor sentiment toward Ethereum soured significantly during the last trading week of March, as spot Ethereum ETFs recorded a total net outflow of $207 million. The selling pressure was concentrated in major funds, with BlackRock's iShares Ethereum Trust (ETHA) leading the exodus with a $285 million net outflow between March 23 and March 27, 2026. Grayscale's Ethereum trust contributed to the negative trend, losing another $24.9 million over the same period. The data reveals a consistent pattern of withdrawals, with ETH funds posting a $16.18 million net outflow on March 23 alone.
Bitcoin ETFs Attract Capital as Sentiment Splits
While capital fled Ethereum products, investors showed a renewed, albeit cautious, appetite for Bitcoin. On March 23, U.S. spot Bitcoin ETFs attracted a net total of $167.23 million, reversing a three-day outflow streak and helping propel Bitcoin's price back to $71,000. BlackRock's IBIT fund was the primary beneficiary, absorbing $160.89 million, or roughly 96% of the day's total Bitcoin ETF inflows. This stark divergence highlights a clear institutional preference for Bitcoin as a primary store of value over other digital assets.
However, the demand for Bitcoin ETFs remains uneven. Data from March 25 showed a more mixed environment, where a strong $83 million inflow into Fidelity's FBTC was nearly offset by a $70.7 million outflow from BlackRock's IBIT. This choppiness indicates that while the overall trend favors Bitcoin, large investors are still actively repositioning rather than committing to a broad-based rally.
Investors Reassess Ethereum's Risk After 62% Drawdown
The pivot away from Ethereum appears rooted in its higher volatility and risk profile compared to Bitcoin. Over the past year, BlackRock's ETHA fund experienced a maximum drawdown of -61.66%, significantly steeper than the -49.33% drawdown for a comparable Bitcoin fund like Fidelity's FBTC. This performance gap, coupled with Ether's valuation being more dependent on network adoption, has prompted investors to de-risk. This trend extends beyond Ethereum, as Solana spot ETFs also registered their first weekly net outflow since early February, with $4.24 million leaving the funds. The collective data shows institutional capital consolidating its focus on Bitcoin, treating it as the benchmark asset while reducing exposure to more speculative altcoins.
