According to Bloomberg Intelligence analyst James Seyffart, Ethereum ETF investors find themselves at a far uglier entry point than their Bitcoin counterparts, with spot ETH funds now absorbing a pullback that has left many buyers deep underwater.
“Ethereum ETF holders are in a worse position than their Bitcoin ETF brethren,” Seyffart wrote on X on Tuesday evening. “ETH’s current price of $2,000 is well below the average ETF holders’ cost basis of around $3,500. It’s a painful proposition. But it’s one that Eth ETF holders have experienced before.”
Seyffart added that the ETH ETF’s most recent low pushed the decline “beyond 60%,” which is roughly the percentage decline ETH saw at its April 2025 low, calling the move serious but not unprecedented for Ether’s investor base.
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Despite this, he argued that investor response has been more stoic than the price action would suggest. “Nevertheless, the vast majority of buyers stayed put,” he wrote, noting that net inflows into the ETH ETF complex fell from around $15 billion to less than $12 billion – a significantly greater deterioration than Bitcoin ETFs “on a relative basis,” but, in his words, “still pretty decent diamond hands in a large project (for now).”
New flow data suggests the bleeding has slowed, but not changed decisively. Data from SoSoValue shows that US ether spot ETFs saw approximately $13.82 million in net inflows on February 10. This follows a week of net redemptions totaling approximately $166 million, extending an outflow streak by several weeks.
On a monthly basis, SoSoValue figures put last month’s net flow at around $350 million in cash outflows. In total, total net assets stood at $11.76 billion as of February 10.
Goldman Sachs is bullish on Ethereum
In this context, the latest 13F disclosure from Goldman Sachs added a different type of signal: the exposure of traditional finance is increasingly visible and is not limited to bitcoin. On Tuesday, Goldman disclosed about $2.36 billion in crypto-related positions, including about $1.06 billion tied to spot bitcoin ETFs and about $1.0 billion to spot ether ETFs, as well as smaller exposures of about $153 million in XRP and $108 million in Solana — an allocation of about 0.33% in the context of its broader holdings.
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Reactions to X leaned into the optics. Binance founder Changpeng “CZ” Zhao framed the case as a positioning gap between crypto natives and banks: “Crypto is probably the only place where you started earlier than the banks. But if you sold your crypto last quarter, while the banks are buying, then…”
MoonRock Capital founder Simon Dedic focused on the sizing of ETH himself: “Very interesting to see them holding almost as much ETH as Bitcoin. For a conservative investment bank that typically sticks to standard portfolio structures like market cap weighting, it says a lot that they are significantly more bullish on Ethereum than Bitcoin, which would normally be 4-6 times larger in such portfolios. This is the supercycle institutional, and ETH is clearly the institutional darling.
At press time, ETH was trading at $1,949.
Featured image created with DALL.E, chart from TradingView.com
