Ethereum ETFs Bleed $429M in Largest Single-Day Outflow Since Early September
U.S. spot Ethereum exchange-traded funds recorded $428.5 million in outflows on Monday, marking the sharpest single-day capital flight since September 5, when ETH funds shed $446.8 million.
BlackRock's ETHA suffered the largest outflow with $310.1 million exiting on Monday, while Grayscale's ETHE posted $21 million in withdrawals, and Fidelity's FETH saw $19.1 million flee, according to Farside Investors data.
Ethereum ETFs attracted $488 million in net inflows the previous week, part of a $3.17 billion surge into Bitcoin and Ethereum products that pushed year-to-date crypto fund deposits to a record $48.7 billion, per a report from CoinShares.
Those flows reversed course with President Donald Trump's announcement of 100% tariffs on Chinese goods on Friday, triggering the largest liquidation event in crypto history with an estimated $19 billion to $30 billion in leveraged positions wiped out within 24 hours.
“Monday's outflows are the aftershocks from Friday's tariff-driven selloff," Illia Otychenko, Lead Analyst at CEX.IO, said. “The market tone has turned defensive, with many investors preferring to wait for clearer macro signals before stepping back in."
The “macro reflex” behind the recent withdrawals doesn’t point to deeper weakness, Bitnunix analyst Dean Chen noted, highlighting that “institutional positioning remains intact” after roughly $488 million in ETH ETF inflows the prior week.
Chen described the Monday withdrawal as a “stress response” driven by short-term macro jitters, adding only if outflows “persist over the next few sessions” would it signal a deeper repositioning.
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"The coming sessions will reveal whether this was a passing tremor or the start of a deeper rotation,” he added.
Markets stabilized over the weekend after Trump adopted a more conciliatory tone on Sunday, suggesting trade tensions would resolve while characterizing Xi Jinping's export restrictions as a temporary misstep.
ETH has been fluctuating between the $3,900-$4,200 range throughout the day, down 3.4% in the last 24 hours according to CoinGecko data.
Ethereum’s “relatively strong” fundamentals and the lowest leverage ratio since May point to a “healthier setup” for recovery, Otychenko noted, highlighting that the recent pullback remains limited despite broader caution.
"Ether registered bullish divergences on the daily RSI and MACD, signaling that buying momentum is starting to increase after the recent selloff," he observed. "This could provide short-term support for price action as the market stabilizes."
Complicating Strategic Options
Kenvue's strategic review committee is considering a broad range of options, including a sale of the company or sale or spin-off of its struggling skin health & beauty unit, which contains household brands like Neutrogena, Aveeno and Clean & Clear, according to people familiar with the company's thinking.
Finding a buyer for the full company would be much harder now with several dealmakers saying the company is “unsellable” until all Tylenol claims are resolved due to worries about litigation risk and a prolonged drop in sales at one of the biggest brands.
“In our view, the company’s current structure makes (a full sale) unlikely, but a more focused OTC and skin care business could eventually become a target,” a July HSBC research note mentioned.
There is already interest in Neutrogena and Aveeno, sources said, but so far Kenvue has only been willing to part with its non-core skin health & beauty brands.
The skin health & beauty unit could be worth $6 billion to $9 billion, analysts noted, despite the segment's falling revenue. That poses a large challenge for any company or private equity firm, but some have turnaround ideas for the brands, sources said.
Neutrogena has struggled to win over Gen Z consumers and lost market share to competitors like L'Oreal's CeraVe, which in 2021 became the No. 1 recommended skin care brand by dermatologists.
Legal Challenges Ahead
If Kenvue were to sell or spin the skin health & beauty unit, the remaining company might be worse off without profitable segments to balance potential losses from its Tylenol litigation.
Ashley Keller, who represents families in the class action dismissed last year, submitted the Trump administration's latest actions as supporting evidence in an appeal before the 2nd U.S. Circuit Court of Appeals in Manhattan.
Kenvue could face substantial damages if the appeals court sides with plaintiffs, raising concerns among investors.
The appellate court is using a legal standard that allows it to overturn the dismissal only if the panel of judges finds the prior ruling to be "plain error," unreasonable, or "completely out of bounds," according to lawyers and analysts.
A ruling is expected by the end of March.
The solution to the Tylenol problem might just be time, analysts said, but board committees typically try to wrap up strategic reviews in a matter of months.
This article has been published in Decrypt via Yahoo News.
