ETHA Sheds $346 Million in a Single Week as Ether's Liquidation Spiral Collides With Six Weeks of ETF Withdrawals — Where Does the Selling End?
Shares of BlackRock's iShares Ethereum Trust ETF skidded 4.6% to $48.00 Monday morning as an overnight wave of forced selling in crypto derivatives markets slammed into a fund already hemorrhaging institutional money. Ether fell 4.4% over 24 hours to $2,136.61 , dragging ETHA — which holds nothing but ether — down with it. For shareholders, the math is brutal: the fund is down 12.3% in five trading days, erasing roughly a month of prior gains.
$449 Million in Forced Selling Turned a Dip Into a Rout. Ethereum recorded $449 million in liquidations over 24 hours — the highest of any cryptocurrency — as the price fell to its lowest level since August. Liquidations happen when traders who borrowed money to bet on higher prices can't cover their losses, and exchanges automatically dump their positions. Ether liquidations ran about 1.6 times Bitcoin's, suggesting leveraged bullish bets were more crowded in Ether going into the drop. That amplifier effect makes ETHA more volatile than its Bitcoin counterpart.
Six Straight Weeks of Fund Withdrawals Signal Fading Institutional Appetite. Ether ETFs experienced $365 million in outflows for the week ending November 6, marking the sixth consecutive week of withdrawals, with ETHA leading at $346 million.
The funds had already recorded $1.61 billion in net outflows during October, their largest monthly outflow since launch.
ETHA's net assets fell from $9.9 billion to $6.9 billion between October 5 and 30 — a combination of redemptions and price declines. When large investors pull cash out of a spot ETF, the fund must sell ether to meet those redemptions, adding more selling pressure to the very asset it tracks.
Broad Markets Are Fine — This Is a Crypto-Specific Problem. U.S. equity futures were positive Monday, meaning this selloff isn't about general risk aversion. The drop added to a week of pressure that began when U.S. technology stocks fell sharply on November 5 , but crypto kept falling even after equities stabilized. The average entry price of ETF buyers was around $3,200 , meaning the typical ETHA investor who bought through the fund is now sitting on an unrealized loss exceeding 33%. That underwater position makes further outflows likely if sentiment doesn't improve quickly.
Bottom line: A self-reinforcing loop — falling prices trigger liquidations, which deepen the decline, which spook ETF investors into redeeming — remains intact. Until weekly fund flows turn positive or leveraged positioning is fully flushed out, ETHA shareholders face continued downside risk.