ETF Outflows Persist as Ethereum Sentiment Turns Bullish Again

There is fresh excitement about Ethereum among crypto traders, while investors on Wall Street keep taking millions out of its ETF products.

Bitcoin and XRP are instead meeting growing distrust, and analysts think that mood could end up supporting a recovery.

According to Santiment, Ethereum now receives 2.05 bullish social media posts for every bearish one. Yet US Ethereum ETFs have seen outflows for 10 consecutive trading sessions.

Why Are Bitcoin and XRP Traders So Fearful?

The firm tracks positive and negative comments on X, Reddit and Telegram. Any reading above 1 signals that bullish posts are more common than bearish ones.

Bitcoin's score has retreated to 0.82 after repeated failures to hold above $87,000 and a slide toward $81,000. A single day wiped out $688.56 million for leveraged bullish traders.

XRP is in a similar position. Its score stands at 0.92 after a weekly decline exceeding 9%, and the token has had trouble climbing above $1.40.

The mood has swung quickly. Earlier in October, bearish views dominated Ethereum and XRP, while Bitcoin drew more positive commentary.

“Ethereum is suddenly the crowd favorite…Bitcoin is seeing the opposite setup…XRP is also deep in FUD,” Santiment analysts noted.

Ethereum’s $780 Million Warning Sign

Ethereum is leading the bullish conversation, but its ETF investors are pulling money out.

According to SoSoValue, Ethereum ETFs lost another $85.4 million on October 12, lifting withdrawals since September 29 to above $780 million.

Bitcoin ETFs lost $65.4 million on the same day, while XRP ETFs had zero net flows and $1.55 billion in total assets.

The sentiment gap could be significant for the next market recovery, in Santiment's view.

“From a contrarian perspective, BTC and XRP’s fear is healthier than ETH’s crowd excitement if prices begin recovering,” the analysts wrote.

The logic is basic. When the crowd turns very bullish, much of the buying energy could already be priced in. Heavy fear leaves more room for sentiment to turn higher.

At this point, Ethereum's popularity is being tested: real investment demand still has to catch up with the enthusiasm.