BlackRock, Fidelity dump ETH ETFs as an extended losing streak gains momentum

Ethereum ETFs have taken another hit as cooling demand deepens outflows, with major issuers now trimming their holdings.

Ethereum ETFs recorded $422 million in net outflows on August 19, according to the latest data from SoSoValue. This marks the third consecutive day the ETFs have closed in the red, and their second-largest single-day outflow since launch.

Fidelity led the outflows with $156 million, followed by Grayscale at $122 million and $89 million across its two offerings. Bitwise saw $40 million in withdrawals, while other issuers, including BlackRock, Franklin Templeton, and Invesco, posted smaller outflows ranging from $3 million to $6 million.

Over the three-day streak, the funds have shed approximately $678 million, triggering a sell-off among major issuers. On-chain data from Arkham Intelligence shows that BlackRock, Fidelity, and Grayscale have recently offloaded significant portions of their ETH (ETH) holdings, reaching up to $160 million.

The combined outflows reverse the month-long trend of positive performance and accumulation among these firms, coinciding with broader weakening momentum around ETH.

Ethereum ETF outflows fueled by price drop

Since failing to uphold its recent rally gains, ETH has been in a downward trend over the past few days. Trading around $4,180 at the time of writing, the asset has dropped roughly 1.5% in the past 24 hours, extending weekly losses to over 10%.

The ongoing pullback has placed ETH in a key testing zone, with on-chain signals now signaling caution. The daily chart shows price action now consolidating just above the 20-day EMA, around the $4,135 mark. This level is acting as immediate support after the pullback from highs near $4,750 earlier this month. 

While the broader trend remains positive, with the 50, 100, and 200-day EMAs all sloping upward, ETH’s short-term momentum has slowed. RSI has dropped to 54, retreating from overbought territory earlier this month, pointing to waning buying pressure. 

This reset now places ETH in neutral ground, suggesting the market is neither overheated nor oversold. If it manages to hold above the $4,135 support, it could stabilize and prepare for another attempt toward the $4,500–$4,700 range. However, a further break below this level would shift focus to the 50-day EMA around $3,690, potentially marking the start of a deeper correction phase.

Meanwhile, Ethereum ETF issuers still hold a significant stash of ETH despite the recent sales. With more than 6.3 million ETH in assets under management, the funds control a combined 5% of the total current ETH supply, valued just under $26 billion at current prices. 

However, if ETH fails to regain upward momentum, ongoing outflows could intensify, fueling further sales and adding to the existing downward pressure.