Bitcoin News Today: BlackRock Steals Bitcoin's Spotlight as ETF Inflows Shift to Ethereum

US Bitcoin spot ETFs recorded a net inflow of $440.8 million during the week ending August 28, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the inflows with $247.9 million. This marks a resurgence in institutional demand for Bitcoin following several weeks of outflows, with BlackRock, Fidelity, and ARK Invest accounting for over 85% of the inflows on August 25 [3]. Cumulative inflows into U.S. Bitcoin ETFs now stand at $54.2 billion, maintaining a dominant market share despite recent outflows [2].

The inflows into Bitcoin ETFs came amid a broader trend of institutional capital rotating into crypto assets, particularly Ethereum. U.S. spot Ethereum ETFs have outpaced Bitcoin in terms of recent inflows, with over $13.6 billion in net inflows since launch and $455 million in flows on August 26 alone, compared to just $88 million for Bitcoin [3]. BlackRock’s ETHA alone absorbed $323 million in that session, highlighting a clear preference among institutional investors for Ethereum’s yield-bearing characteristics [3]. Ethereum ETFs are now valued at approximately $29.8 billion in assets under management, accounting for 5.4% of Ethereum’s total market cap [2].

BlackRock has emerged as a key player in both the Bitcoin and Ethereum ETF markets. As of August 28, the iShares Bitcoin Trust holds 745,357 BTC, surpassing the holdings of major exchanges like Coinbase and Binance. This institutional accumulation has shifted the custody structure of Bitcoin from decentralized exchanges to regulated ETF vehicles, reducing the supply of liquid BTC on exchanges and influencing market dynamics [6]. BlackRock’s Ethereum holdings also stand at 3.775 million ETH, reinforcing its dominance in the ETF landscape.

The institutional adoption of crypto ETFs has been driven largely by financial advisers, who now hold $1.3 billion in Ethereum ETFs, with exposure increasing by 68% quarter-over-quarter [2]. Advisers also hold $17 billion in Bitcoin ETFs, nearly double hedge fund exposure, signaling a broader shift in capital allocation toward regulated, liquid products [2]. This trend has implications for market structure, as ETF holders typically exhibit lower turnover compared to retail investors on exchanges.

Price action has reflected these shifts in capital flows. Bitcoin (BTC-USD) traded around $111,400 as of late August, recovering from a 11% pullback from its all-time high [3]. Meanwhile, Ethereum (ETH-USD) reached $4,615 on August 26, with the ETH/BTC ratio climbing above 0.04, its strongest level of the year [2]. Despite the inflows, analysts caution that Ethereum’s short-term momentum could continue to divert capital from Bitcoin, particularly in the absence of renewed catalysts such as expanded ETF approvals or macroeconomic-driven risk-on environments [2].

On-chain data further supports the trend of ETFs reshaping the custody landscape. The 30-day moving average of Bitcoin inflows to exchanges has fallen to a multi-year low, indicating reduced short-term selling pressure from large holders [3]. Ethereum’s on-chain inflows have also declined, reinforcing the pattern of institutional investors opting for ETFs and cold storage over exchange custody [3]. This structural shift has implications for price volatility, as tighter liquidity in ETFs can amplify price movements during periods of demand or redemption.

Source: [1] Spot ethereum ETFs outpace bitcoin ETF inflows (https://sherwood.news/crypto/spot-ethereum-etfs-outpace-bitcoin-etf-inflows/) [2] Bitcoin ETF Inflows – BTC-USD Holds $113K as Ethereum ... (https://www.tradingnews.com/news/bitocin-etf-inflows-struggles-as-ethereum-captures-wallstreet-capital) [3] Bitcoin ETF Inflows: BTC-USD Rebounds to $111K as ... (https://www.tradingnews.com/news/bitcoin-etf-inflows-btc-usd-recovers-to-111k-usd) [4] iShares Bitcoin Trust ETF (IBIT) Latest Prices, Charts & News (https://www.nasdaq.com/market-activity/etf/ibit) [5] BlackRock Offloads Millions in BTC After Weekly Buys (https://finance.yahoo.com/news/blackrock-offloads-millions-btc-weekly-202821910.html) [6] BlackRock holds approximately 745000 BTC with the spot ... (https://en.cryptonomist.ch/2025/08/28/blackrock-holds-approximately-745000-btc-with-the-spot-etf-surpasses-the-reserves-of-major-exchanges-and-shifts-custody-towards-institutional-custodians/)