BlackRock

Record

Ethereum

Ethereum is entering a critical week with two opposing forces shaping the market: institutional investors are pulling money from spot ETH ETFs, while a record amount of Ether remains locked in staking.
US spot Ethereum ETFs recorded $88.6 million in net outflows on October 26, according to <a href="https://farside.co.uk/eth/" rel="noopener noreferrer nofollow">Farside Investors</a>.
The latest withdrawal follows a volatile stretch for the funds, including $110.6 million of net outflows on October 22 and a modest $4.4 million inflow one day later.
<h2 id="blackrock-leads-the-latest-ethereum-etf-outflows">BlackRock Leads the Latest Ethereum ETF Outflows</h2>
BlackRock’s ETHA accounted for most of the October 26 decline, recording approximately $104.7 million in outflows.
Fidelity’s Ethereum fund partly offset that move with around $16.1 million in inflows.
Despite the latest weakness, cumulative net flows across US spot Ethereum ETFs remain strongly positive at approximately $12.66 billion, according to <a href="https://farside.co.uk/eth/" rel="noopener noreferrer nofollow">Farside’s ETF data</a>.
The short-term reversal nevertheless shows that institutional demand for ETH remains sensitive to broader market conditions.
<h2 id="record-amount-of-eth-is-now-staked">Record Amount of ETH Is Now Staked</h2>
At the same time, Ethereum’s staking market is moving in the opposite direction.
A recent Bitwise report cited by <a href="https://www.theblock.co/news/ecosystems/2026-10-20-ethereum-solana-staking-record-yields-fall-bitwise-q3-421414" rel="noopener noreferrer nofollow">The Block</a> showed that 43.8 million ETH was staked at the end of September.
That represents nearly 36% of Ethereum’s total supply.
Staking inflows reached 7.96 million ETH during the first nine months of 2026, pushing the amount of ETH committed to network validation to a record level.
For the market, that matters because staked Ether is generally less liquid than ETH held directly on exchanges.
A growing share of supply locked in staking could therefore tighten the amount of ETH immediately available for trading.
<h2 id="staking-yields-are-falling">Staking Yields Are Falling</h2>
There is, however, a trade-off.
As more ETH enters staking, rewards are being distributed across a larger pool of validators.
Bitwise data showed average annualized Ethereum staking yields falling to 2.63% in Q3, down from 2.81% in the previous quarter.
Lower yields could eventually reduce the incentive for new staking deposits, although the record amount currently locked suggests demand remains substantial.
<h2 id="the-fed-adds-another-risk-for-eth">The Fed Adds Another Risk for ETH</h2>
Ethereum is also facing an important macro catalyst.
The Federal Reserve begins its October 27–28 meeting today.
Nearly all economists surveyed by <a href="https://www.reuters.com/business/fed-skip-october-raise-rates-again-december-nearly-all-economists-say-2026-10-20/" rel="noopener noreferrer nofollow">Reuters</a> expect policymakers to keep rates unchanged at 3.75%–4.00% this week.
However, persistent inflation has increased expectations that another rate increase could follow in December.
Higher rates and Treasury yields typically create more difficult conditions for risk assets such as cryptocurrencies.
That means Ethereum ETF flows could remain volatile until investors receive clearer guidance from the Fed.
<h2 id="what-could-move-ethereum-next">What Could Move Ethereum Next?</h2>
Three factors now stand out.
ETF flows: Continued institutional outflows would signal weaker near-term demand.
Staking supply: With almost 36% of ETH staked, liquid supply remains increasingly constrained.
Federal Reserve policy: A more hawkish outlook could pressure ETH, while a softer message could improve risk appetite.
Ethereum therefore enters the final days of October with a mixed setup.
Institutional ETF demand has weakened, but record staking continues to remove a significant share of ETH from the liquid market.
If ETF flows recover while staking remains elevated, the combination could create a more supportive supply-demand environment for Ethereum.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Ethereum ETF Outflows Hit $88.6M as Record Staking Tightens ETH Supply

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