In a significant blow to Ethereum’s growth narrative, the U.S. Ethereum spot ETF experienced its largest single-day net outflow since its launch in July. According to Coindesk on September 24, over $79 million was withdrawn on Monday, with Grayscale’s ETHE bearing the brunt of the outflows. Meanwhile, Bitwise’s ETHW saw only a modest inflow of $1.3 million, while other products remained stagnant.

This dramatic exit underscores growing institutional hesitation toward Ethereum, especially as investors question the asset’s long-term prospects. Peter Chung, head of research at Presto Labs, noted that Ethereum’s “world computer” vision doesn’t resonate with traditional finance (TradFi) investors the way Bitcoin’s “digital gold” narrative does. Augustine Fan from SOFA.org added that despite ETH’s short-term rise following the Fed’s dovish stance, ETF outflows reveal a fragile market sentiment. Independent analyst Nick Ruck echoed this, attributing the outflows to widespread pessimism surrounding Ethereum’s future.

As Ethereum struggles to gain solid footing in the ETF space, the question remains: Can it turn the tide and regain investor confidence?

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