Ethereum ETF investors face 43% losses – Will outflows accelerate?

U.S. spot Ethereum ETF traders are exhibiting resilience just like their BTC counterparts, however they’re reportedly beneath elevated market misery. 

Amid the prolonged crypto rout, Bloomberg ETF analyst James Seyffart noted that ETH ETF patrons have been down +40% from their value foundation of $3,520. 

“Ethereum ETF holders are sitting in a worse place than their Bitcoin ETF brethren. It’s a painful proposition.”

Supply: Bloomberg

Can ETH ETF traders stand up to the stress?

Nevertheless, Seyffart mentioned that the traders have skilled related market misery earlier than in early 2025. 

Through the Trump tariff wars in Q1 2025, the ETH value dropped 60%, almost just like the latest drawdown to $1.8K. 

Apparently, ETH ETF holders hardly flinched at the moment, recording solely about $1 billion in outflows through the bearish sentiment in early 2025. 

However will such resilience be replicated in 2026’s drawdown? In keeping with Seyffar, ETH traders have seen overwhelming promoting stress however have stayed put. 

“Nonetheless, the overwhelming majority of patrons have stayed put. The web inflows into the ETH ETFs have gone from about $15 billion down under $12 billion.”

He added,

“This can be a a lot worse selloff than the Bitcoin ETFs on a relative foundation, however nonetheless pretty respectable diamond fingers within the grand scheme (for now).”

Supply: Bloomberg

BTC ETFs noticed comparatively little outflow over the identical interval. 

Nevertheless, the $4 billion in ETH ETF outflows could be the start if the broader bear market performs out as previous patterns counsel.

Within the close to time period, Choices merchants have been closely hedging towards draw back threat to $1.6K and $1.9K, as proven by the highest volumes (purple) over the previous 24 hours. 

This underscored short-term warning forward of U.S. macro information on the thirteenth of February. 

Supply: Arkham/Deribit

Assessing potential backside

However the Singapore-based crypto buying and selling desk famous that ETH might type a base forward of Friday’s inflation print, which might set the tone for threat urge for food and expectations of Fed fee cuts. 

In a market replace, the agency added, 

“Spot $ETH ETFs flipped again to $57m of inflows after three days of outflows, alongside continued accumulation from Tom Lee’s BitMine, which helps to regular the narrative round Ethereum after a bruising week.”

At press time, ETH traded at $1.95K and will slip decrease if the 2026 bear market follows the 2022 sample.

If the shut correlation with the 2022 development holds, ETH might type a possible backside within the $1000-$1200 vary by the top of March 2026. 

Supply: ETH cycle backside patterns (2022 vs 2026)

Closing Ideas 

• ETH ETF holders have been 43% underwater after the worth slipped to $1.95K on the time of writing.
• Though the traders withstood related market misery in early 2025, an extra drawdown might pressure them.