On Thursday, Ethereum exchange-traded funds faced a four-day downturn, losing nearly $184 million as geopolitical tensions overshadowed new records in U.S. stock markets.
The outflow intensified on April 29 when Ethereum ETFs saw net redemptions of $87.7 million, marking the largest single-day withdrawal since March 26, according to SoSoValu data. The cumulative flows for these funds have decreased from a January peak of $12.9 billion to $11.9 billion.
Despite this decline in ETFs, Ethereum’s price increased by 2.2% during the same timeframe, reaching $2,313 as per CoinGecko data. This indicates that the selling pressure on the fund product has not directly impacted the spot market.
Prediction platform Myriad, owned by Decrypt’s parent company Dastan, shows a 55% probability of Ethereum reaching its next significant milestone at $3,000, up from 46% on April 30.
The negative trend for Ethereum ETFs aligns with broader crypto investment product weakness. Bitcoin ETFs lost $476 million over the same four-day span ending April 30, with peak outflows hitting $263 million on April 27. Their cumulative net inflows are currently at $58.1 billion.
These outflows occurred as traditional markets surged, with the S&P 500 achieving a new record high of 7,271 due to strong technology sector earnings.
Meanwhile, oil prices remained above $120 per barrel following the UAE’s departure from OPEC. On Myriad, there is a projected 70% likelihood of oil reaching this level—down from an earlier 79% probability for today.
The Middle East’s geopolitical risks continue to affect risk asset outlooks, with no imminent resolution in sight for the U.S.-Iran conflict, keeping energy markets volatile and inflationary pressures high. Myriad users estimate a mere 27% chance of a diplomatic meeting between the U.S. and Iran by mid-month, down from 36% earlier.
As Ethereum and the wider crypto market follow Bitcoin’s trajectory to recover losses after the Federal Open Market Committee kept the benchmark interest rate at 3.5%-3.75%, citing high inflation driven by rising energy costs.