Ethereum ETF Sees Heavy Redemptions as Crypto Sentiment Sours
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The Bitwise Ethereum ETF, ETHW, recorded a sharp outflow of $31.1 million on January 21, 2026, a move that stripped roughly 8.39% from its total assets under management. The fund now oversees about $370.6 million, with the latest redemption wave underscoring mounting investor caution toward Ethereum-linked products.
The withdrawal is significant for a single session, suggesting that institutional and sophisticated retail holders may be locking in cash or reallocating risk after a volatile stretch in the underlying asset. While ETH-focused ETFs had previously benefited from enthusiasm around network upgrades and broader crypto adoption, the scale of the recent outflow hints at a shift in sentiment, at least in the near term.
The related asset, ETH-USD, is currently trading at $2,916.59, down roughly 22.8% over the past three months. Short-term signals remain pessimistic, with the 1-day technical outlook flashing a Strong Sell reading. That combination of medium-term price weakness and negative technicals helps explain why a meaningful slice of capital has been pulled from ETHW, as traders reassess their exposure amid concerns over liquidity, regulatory uncertainty, and the broader risk-off tone across digital assets.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.