Federal Reserve Rate Hike Triggers $224M Ethereum ETF Outflows
The sudden spike in Ethereum ETF outflows on September 16 can be attributed to the Federal Reserve's first interest rate hike in three years, which triggered a broad de-risking move among institutional investors.
According to data from BlackRock's iShares Ethereum Trust (ETHA), $110.03 million walked out of the fund in one session, marking the largest single-fund redemption across the US spot Ethereum ETF market that day.
This was part of a broader wave of Ethereum ETF outflows, with total net outflows reaching $224 million on September 16. The sector-wide outflow was not confined to Ethereum, as Bitcoin ETFs also experienced significant redemptions, with nearly $296 million in net outflows during the same session.
The trigger behind this sell-off appears to be macroeconomic rather than asset-specific, suggesting that institutional investors were responding to the Federal Reserve's rate hike.