Spot Ethereum ETF investors are facing significant losses, with holdings down approximately 40% from their average cost basis of $3,520 according to Bloomberg analyst James Seyffart. Despite $4 billion in outflows during the extended market downturn, most holders have remained resilient, mirroring behavior seen during a similar selloff in early 2025.
U.S. spot Ethereum ETF investors are reportedly under elevated market distress amid an extended crypto rout. Bloomberg ETF analyst James Seyffart noted that these buyers were down roughly 40% from their average cost basis.
“Ethereum ETF holders are sitting in a worse position than their Bitcoin ETF brethren. It’s a painful proposition,” Seyffart stated. Investors experienced similar market distress during the Trump tariff wars in early 2025, when Ethereum’s price dropped nearly 60%.
At that time, ETH ETF holders recorded only about $1 billion in outflows. Seyffart observed that despite current selling pressure, the vast majority of buyers have stayed put.
“Still, the vast majority of buyers have stayed put. The net inflows into the ETH ETFs have gone from about $15 billion down below $12 billion,” he explained. The $4 billion in ETH ETF outflows contrasts with relatively little outflow from BTC ETFs over the same period.
In the near term, options traders are heavily hedging against downside risk to $1,600 and $1,900. This underscores short-term caution ahead of key U.S. macro data scheduled for release.
A Singapore-based crypto trading desk added that spot ETH ETFs saw $57 million of inflows after three days of outflows. This accumulation is reportedly helping to steady the narrative around Ethereum.
At the time of reporting, ETH traded around $1,950. If the 2026 bear market follows the 2022 pattern, analysts suggest a potential bottom could form in the $1,000 to $1,200 range by the end of March 2026.
