ETH Slides 35% in a Month as ETF Flows Turn Negative

U.S. spot Ethereum ETFs are recording major outflows as demand weakens across the crypto market, according to a new report from BestBrokers.

$ETH ETF holdings dropped from more than 6.1 million $ETH in late January to about 5.8 million by Feb. 23. Total assets in those funds also fell from $18.6 billion to about $11.9 billion. The data also shows that the market is highly concentrated, with BlackRock holding about 57% of all $ETH in U.S. ETFs – well ahead of Grayscale and Fidelity.

Ether ($ETH) has fallen sharply, down about 35% over the past month and nearly 40% over the past three months. Currently, the world’s second-largest cryptocurrency by market capitalization is trading at around $1,850, per CoinGecko.

$ETH Holdings by ETF Issuer

The findings highlight how quickly sentiment toward crypto has soured over the past few months. It also shows how investors continue to pull money from riskier assets amid rising volatility.

Bitcoin Findings

On the Bitcoin side, the report said spot Bitcoin ETFs have also had a weaker start to 2026 after steady inflows in 2024 and 2025. BestBrokers estimates more than $4 billion in net outflows since the start of the year, with total ETF holdings slipping to 1.26 million $BTC as of Feb. 23 – the first mid-quarter decline since launch.

BlackRock’s iShares Bitcoin Trust (IBIT) led the pullback, posting outflows of 19,300 $BTC in February, while Grayscale and Fidelity also recorded outflows.

BestBrokers' report said the divergence suggests institutions are treating Bitcoin as longer-term exposure, while Ethereum funds are more sensitive to market sentiment.