Bitcoin News Today: Ethereum Surpasses Bitcoin in ETF Inflows Amid Shifting Investor Confidence

Spot Bitcoin ETFs ended a six-day streak of net outflows on Aug. 25, with $219 million in inflows reported, marking a reversal in investor sentiment following a period of sustained redemptions. The previous week saw spot Bitcoin ETFs losing $1.2 billion in value between Aug. 15 and Aug. 22, as institutional investors engaged in profit-taking amid Bitcoin’s market correction. The outflows were attributed to polarized investor sentiment over U.S. monetary policy, with pessimism around the Federal Reserve's stance driving $2 billion in redemptions before the tide shifted with Fed Chair Jerome Powell’s more dovish-than-expected remarks during the Jackson Hole Symposium [1].

Fidelity and BlackRock emerged as the top performers in the rebound, with Fidelity’s Wise Origin Bitcoin Fund (FBTC) capturing $65.56 million in inflows and BlackRock’s iShares Bitcoin Trust (IBIT) securing $63.38 million [1]. ARK 21Shares Bitcoin ETF (ARKB) contributed $61.21 million to the day’s inflows, while Bitwise’s BITB saw $15.18 million and Grayscale’s Bitcoin Trust and VanEck’s HODL fund recorded $7.35 million and $6.32 million, respectively [1]. The return of positive flows suggests a renewed appetite for Bitcoin among investors despite its recent price correction.

Bitcoin’s price movement reflected broader market sentiment shifts during the period. On Aug. 14, Bitcoin reached a record high of $124,128 according to CoinGecko data, only to drop 11% to $110,186 by the following week. The decline coincided with the ETF outflow streak and was followed by a market rebound, with the Crypto Fear & Greed Index rising to a “Greed” score of 60, signaling increased confidence in buying among market participants [1]. The recovery coincided with speculation that the Federal Reserve may implement a rate cut in September, which contributed to renewed inflows into crypto ETFs later in the week [3].

The ETF rebound was not limited to Bitcoin. Ethereum ETFs outperformed their Bitcoin counterparts on Aug. 25, attracting $443.9 million in inflows, nearly double the amount seen in Bitcoin ETFs. BlackRock’s ETHA led Ethereum inflows with $314.9 million, followed by Fidelity’s FETH with $87.4 million. Smaller allocations were seen in Grayscale’s Mini Ethereum Trust and offerings from Bitwise and Invesco, which together added about $17 million [2]. This shift in investor positioning indicates a growing preference for Ethereum in the short term, particularly as its funds offer staking yields and a deflationary supply model [4].

The divergent flows between Bitcoin and Ethereum ETFs reflect evolving institutional strategies in the crypto market. While Bitcoin ETFs showed early signs of stabilization after a heavy redemption period, Ethereum ETFs demonstrated stronger conviction among investors. The contrast in performance highlights the reallocation of capital within the crypto asset class rather than a complete exit from digital assets. The Ethereum rebound, driven by its recent price surge and favorable on-chain metrics, suggests that investors are increasingly viewing Ethereum as a more attractive option under looser monetary policy conditions [5].

Source: [1] Spot Bitcoin ETFs end six-day outflow streak with $219M ... (https://cointelegraph.com/news/spot-bitcoin-etfs-break-outflow-streak-219m-fidelity-blackrock) [2] Fidelity and BlackRock lead Bitcoin ETFs' $219 million ... (https://cryptoslate.com/fidelity-and-blackrock-lead-bitcoin-etfs-219-million-recovery/) [3] Crypto ETPs post $1.4B losses amid recent Bitcoin, Ether ... (https://cointelegraph.com/news/crypto-funds-1-4-billion-outflows-bitcoin-ethereum) [4] Bitcoin ETF Outflows Hit $1.17B as BTC Drops ... - Trading News (https://www.tradingnews.com/news/bitcoin-etfs-bleed-117b-usd-outflow) [5] Six-day outflow streak hits Bitcoin ETFs, ETH turns positive (https://cryptoslate.com/insights/six-day-outflow-streak-hits-bitcoin-etfs-eth-turns-positive/)