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Ethereum ETF Bleeds Cash as ETH Slide Triggers a Wave of Redemptions

Ethereum ETF Bleeds Cash as ETH Slide Triggers a Wave of Redemptions

Ethereum ETF Sees Investor Exodus as Price Slump Deepens

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The iShares Ethereum Trust ETF, ETHA, recorded a sharp outflow of $157.2 million on February 2, 2026, a move that stripped roughly 1.75% from its $8.99 billion in assets under management. The redemption marks a significant bout of profit-taking — or capitulation — as investors reassess their exposure to Ethereum-linked products after a bruising quarter for the underlying token.

The related asset, ETH-USD, is currently trading around $2,291, down about 38.6% over the past three months. That steep drawdown suggests that retail and institutional holders alike have been squeezed by declining prices and rising macro uncertainty. Technically, the market backdrop remains fragile: the 1-day signal is flashing a firm Sell, underscoring persistent downside momentum and a lack of near-term buying conviction.

For ETF investors, the latest outflow from ETHA underscores how quickly sentiment can sour when volatility spikes in the underlying crypto asset. While the fund still commands a sizable asset base, the scale of recent redemptions hints at growing risk aversion and a tilt toward defensiveness among crypto-focused portfolios. If Ethereum’s price fails to stabilize, further withdrawals could follow as allocators rebalance away from high-beta digital assets.

For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.

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