ETH Slides 35% in a Month as ETF Flows Turn Negative

The Defiant

by Jona Jaupi

February 25, 2026

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ETH Slides 35% in a Month as ETF Flows Turn Negative

U.S. spot Ethereum (ETH) exchange-traded funds (ETFs) are experiencing significant outflows as demand in the cryptocurrency sector wanes. According to a report by BestBrokers, ETH ETF holdings have declined from over 6.1 million ETH in late January to approximately 5.8 million by February 23. This drop has also translated into a decrease in total assets under management, falling from $18.6 billion to about $11.9 billion during the same period. The report highlights the concentrated ownership within the sector, with BlackRock leading the way by holding nearly 57% of all ETH in U.S.-listed ETFs, far outpacing competitors like Grayscale and Fidelity. The decline in ETH ETF assets coincides with a broader slump in the cryptocurrency market. Ethereum has fallen sharply over the past month, dropping approximately 35%, and nearly 40% over the past three months. Currently trading around $1,850 per CoinGecko data, Ethereum continues to face headwinds despite its position as the second-largest cryptocurrency by market capitalization. This downturn underscores a broader cooling of investor sentiment in the crypto space, with institutional investors appearing to take a more cautious approach. The shift in ETF flows and price movements could have significant implications for both retail and institutional investors. For those tracking DeFi and Web3 trends, this data points to a potential slowdown in institutional interest, which often sets the tone for broader market sentiment. The concentration of ETH holdings among major players like BlackRock also raises questions about market stability and the impact of large-scale movements on overall price dynamics. For readers following crypto markets, understanding these trends is crucial as they reflect both investor behavior and broader macroeconomic factors affecting the sector. While Ethereum remains a key player in decentralized finance (DeFi) and blockchain technology, its recent performance serves as a reminder of the volatile nature of cryptocurrency investments. For those considering exposure to ETH or other cryptocurrencies, monitoring ETF flows and market sentiment can provide valuable insights into potential trends and risks. This decline also highlights the interconnectedness of traditional financial markets with the crypto sector. As ETFs become a more common vehicle for accessing digital assets, their performance metrics—such as outflows and asset under management (AUM) figures—offer critical data points for gauging market health and investor confidence. For those interested in Web3 and DeFi innovations, tracking these developments is essential to understanding how institutional adoption influences the broader crypto landscape. In summary, the slide in ETH prices and ETF outflows signals a broader cooling of interest in the cryptocurrency market. While

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Originally published on The Defiant on 2/25/2026