Ethereum ETF Sees Investors Pull Back as Volatility Bites Into Crypto Sentiment
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The Franklin Ethereum ETF, EZET, recorded significant outflows on January 02, 2026, with investors withdrawing $2,249,200 from the fund. The redemption represents roughly 3.9% of the ETF’s latest reported assets under management, which now stand at $57,354,600, underscoring a noticeable shift in positioning toward Ethereum-linked exposure.
The outflow comes against the backdrop of a weak quarter for the underlying asset, Ethereum. The related asset, ETH-USD, is currently trading around $3,100.11, having shed roughly 30.8% over the past three months. Despite this pronounced drawdown, the short-term technical picture is more nuanced, with a 1-day signal currently flashing Hold, suggesting traders are in a wait-and-see mode rather than capitulating outright.
For EZET, the latest flow data points to waning risk appetite after a period of sharp price declines in Ethereum, as some investors appear to be locking in remaining gains or cutting losses amid uncertainty over the next leg for digital assets. Yet the relatively contained scale of redemptions versus total AUM may indicate that core holders are staying put, betting that recent weakness could eventually set the stage for a longer-term recovery in the Ethereum ecosystem.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.