Ethereum ETF Outflows and Supply Dynamics: A Contrarian Opportunity?

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As per 528btc, Ethereum ETFs experienced a net outflow of $14 billion in Q4 2025, with $12 billion lost in November alone. Despite this, Ethereum ETFs still outperformed Bitcoin ETFs in Q3 2025, recording $9 billion in inflows. The outflows are attributed to a 25% price drop in Ethereum and macroeconomic uncertainty. However, Ethereum’s structural supply dynamics, including 29.4% staked ETH and a deflationary mechanism post-merge, suggest a tightening supply environment. Market indicators like RSI and MACD suggest bearish sentiment may be exhausted, while on-chain data reveals whale accumulation and lower downside risk compared to Bitcoin. A rebound may depend on renewed ETF inflows and increased network activity post-Fusaka upgrade.

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