Spot ether exchange-traded funds (ETFs) have seen their total net assets cut by more than half over the past three months, as Ethereum’s price continues to sink and investor outflows grow.
The total net assets of ETH-backed ETFs traded in the United States have dropped over 56% since December, falling from a peak driven by $2 billion in inflows to steep losses fueled by declining prices and net redemptions.
According to data from SoSoValue, January saw just $101 million in inflows, while February brought a modest $60 million—insufficient to offset falling ETH prices and showing that the negative downward trend was forming.
Ethereum began trading around $3,700 in the year. At the time of writing, it has plunged to about $1,480—a drop of nearly 56% to a five-year low. Bitcoin, on the other hand, has declined just 18% over the same period.
That sharp price decline has reversed earlier momentum in ether ETFs. March brought over $400 million in net outflows, with more than $56 million already pulled this month. As a result, the total net assets under management in spot ether ETFs have collapsed.
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Ethereum’s Price Collapses Amid Record DeFi Usage
Still, Ethereum’s utility tells a different story. The total value locked (TVL) in DeFi applications built on the network has surged to a record 27.68 million ETH, according to DeFiLlama.
Measured in ETH terms, that’s more than double the 12.7 million ETH seen in early 2024. But with Ether’s falling price, the dollar value of that TVL stands at $46.5 billion—less than half the $100 billion record from late 2021.
The usage has been growing even as various other blockchains move to compete with it in the decentralized finance arena. These networks, including Solana, Polygon, Base, and BNB Chain, have also been seeing price drops given the current market’s momentum.
Ethereum is currently trading at $1,462, a 5.8% decrease in the last 24 hours and 60% in one year, according to data from CoinGecko.
Moreover, Bitcoin (BTC) has also seen its value decline dramatically by 9.9% in the last seven days, mostly after US President Donald Trump imposed tariffs on practically every country on earth, crashing global markets.
