TLDR
- Ethereum validator exit queue has surged past 910,000 ETH worth over $4B.
- ETH price dropped 15% from $4,800 high, now holding support around $4,200.
- BlackRock seeks SEC approval to add staking to Ethereum ETF by October 2025.
- ETH ETF outflows hit $196.6M in a day, led by BlackRock and Fidelity.
Ethereum’s validator exit queue has climbed past 910,000 ETH, worth over $4 billion, raising questions about investor strategy. This rise in staking withdrawals comes amid a recent correction in ETH price and ahead of a possible decision by the SEC on Ethereum staking ETFs. Some analysts believe investors are preparing to shift staked holdings into regulated ETF vehicles as new products wait for approval.
Validator Exit Queue Nears One Million ETH
Data shows that Ethereum’s validator exit queue has grown from 640,000 ETH to over 910,000 ETH in just two weeks. At the current price of around $4,200, the total amount of ETH exiting staking is valued at approximately $4 billion. The average wait time for validator exits has also increased, now standing at 15 days.
There are currently around 1.08 million active validators. Of Ethereum’s total supply, 29.45%—about 35.3 million ETH—is currently staked. However, the demand for new staking is much lower than the current level of exits. Validator Queue data shows that only 258,951 ETH is waiting to be staked, compared to the much larger exit volume.
🚨 Ethereum is seeing a record 907,000 ETH (~$3.9B) waiting to exit staking, with withdrawal times now exceeding 15 days.
This surge may suggests many validators are cashing out, possibly to secure profits or hedge against market uncertainty. pic.twitter.com/XHCYTdSfMJ
— Explorer (@Jazman0X) August 19, 2025
The rise in exits appears to be driven by top liquid staking providers such as Lido, EthFi, and Coinbase. The recent increase in withdrawals has coincided with a 15% drop in ETH price from its recent peak of $4,800 to $4,200. This pattern suggests that some validators may be looking to secure profits amid market volatility.
Investors Eye ETH ETFs Amid Liquidity Shift
Some market analysts suggest that investors may be freeing up staked ETH in preparation for reallocation into upcoming ETH staking ETFs. In July, BlackRock filed a proposal to include staking features in its iShares Ethereum Trust (ETHA). While the official SEC deadline is in April 2026, Bloomberg ETF analyst Eric Balchunas expects a decision as early as October 2025.
According to data from Farside Investors, net flows into Ethereum ETFs turned negative in recent sessions. On August 18, total outflows reached $196.6 million. BlackRock’s ETHA saw outflows of $87 million, while Fidelity’s FETH recorded $78 million in outflows. This shift in ETF inflows suggests that some investors are reducing exposure temporarily, possibly in anticipation of new regulated staking options.
Despite the increase in validator exits, the ETH market has not seen sharp downward pressure. This may be due to steady accumulation by ETH treasury firms and continued interest from institutional investors. However, trading volume has fallen to $45 billion per day, reflecting cautious sentiment in the market.
Market Response and Future Expectations
Ethereum’s recent price performance reflects the current caution among investors. After facing resistance at $4,800, ETH has pulled back and is now holding around the $4,200 level. The slowdown in daily trading volume further shows reduced short-term activity from both retail and institutional traders.
The rise in unstaking could continue if ETH prices remain volatile and ETF decisions near. Some market participants are choosing to unlock liquidity now instead of waiting, potentially to re-enter the market through regulated ETF products if they become available. For now, the market is watching closely to see whether the SEC will approve the proposed staking ETFs ahead of the April 2026 deadline.
As the exit queue remains elevated and investor behavior shifts, Ethereum’s staking landscape could change significantly in the coming months.
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