BlackRock Clients Flee Ethereum Funds Amid Fed Rate Hike

BlackRock's iShares Ethereum Trust (ETHA) saw $110.03 million in redemptions on September 16, the largest individual outflow of any US spot Ethereum ETF that day.

This significant withdrawal was part of a broader trend, with $224 million in net outflows across US spot Ethereum ETFs.

The Federal Reserve's first interest rate hike in three years may have contributed to this de-risking event, as institutional investors sold their crypto holdings in response to the increased borrowing costs.

However, despite these outflows, Ethereum's spot price actually rose 1.54% on the day, suggesting that underlying demand from other market participants absorbed some of the selling pressure.