Ethereum ETF Sees Heavy Redemptions as Traders Capitulate on Price Slump
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The 21Shares Ethereum Etf’s TETH recorded a sharp outflow of $10.56 million on January 22, 2026, a sizable move for a product with just $27.43 million in assets under management. The latest redemption erased roughly 38.5% of TETH’s AUM in a single day, underscoring how quickly sentiment around Ethereum exposure has soured among institutional and retail holders alike.
Such a large withdrawal relative to fund size suggests more than routine profit-taking. Instead, it points to mounting risk aversion in Ethereum-linked products, with investors choosing to de-risk rather than ride out the token’s recent volatility. For smaller crypto ETFs, concentrated redemptions of this scale can amplify liquidity concerns and widen tracking error, potentially making the fund less attractive for new inflows in the short term.
The related asset, ETH-USD, is currently trading at $2,937.58, down about 25.0% over the past three months. That slide has pushed many holders to reassess their exposure just as technical indicators flash caution; the one-day technical signal stands at Sell, reinforcing the bearish tone. The combination of declining prices, negative momentum and substantial ETF outflows paints a picture of a market where defensive positioning is in vogue and dip-buying appetite is muted.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.