Bitcoin News Today: Institutional Capital Shifts, Bitcoin ETFs Lose $1.17 Billion in Single Week

Bitcoin withdrawals have shown a deceleration in recent market activity, as centralized exchanges (CEX) have experienced a net inflow of 296.76 BTC in the last 24 hours. This trend signals a shift in investor behavior, with a noticeable pullback from Bitcoin ETFs and a reallocation of capital towards alternative assets. The broader market dynamics have been influenced by growing concerns over the trajectory of U.S. monetary policy, with institutional investors recalibrating their strategies in response to evolving macroeconomic signals.

Between August 18 and 22, investors withdrew $1.17 billion from spot Bitcoin ETFs, marking the largest weekly outflow since March. The BlackRock-led IBIT fund accounted for nearly half of this withdrawal, losing $615 million. This outflow reflects a broader trend of capital shifting away from Bitcoin and towards Ethereum, where Ethereum-based ETFs are anticipated to see increased activity due to the recent approval of staking mechanisms. Analyst Vincent Liu from CIO Kronos Research noted that this development could stimulate a rise in altcoin adoption, particularly Ethereum.

The capital shift is evident in market dominance metrics, where Bitcoin’s share of the total crypto market cap has declined from 61% at the beginning of the month to 58.17% as of the latest data from TradingView. Ethereum, in contrast, has seen its dominance grow, with net inflows into Ethereum ETFs reaching $2.5 billion since the beginning of August, compared to $1 billion in outflows for Bitcoin. James Butterfill from CoinShares highlighted that Ethereum’s net inflows now represent 26% of assets under management, while Bitcoin’s stand at 11%, indicating a structural shift in institutional preferences.

Despite the outflows, a partial stabilization in the market emerged towards the end of the week. On Thursday, following Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium, a $594 million inflow was recorded, signaling a temporary reversal in sentiment. Powell’s remarks were perceived as more moderate than expected, leading to a modest rebound in Ethereum’s performance. However, Bitcoin continued to see outflows, recording a $1 billion loss for the week. This divergence highlights the different trajectories of the two leading cryptocurrencies and the influence of macroeconomic expectations on their respective valuations.

In Asia, a surge in high-net-worth investor participation in crypto has been observed, with China Hong Kong emerging as a focal point for regulatory clarity and innovation in the digital asset space. Hong Kong’s recent passage of stablecoin regulations and the launch of virtual asset trading services by institutions like China Merchants Bank have added momentum to the region’s crypto adoption. These developments are likely to further solidify the city’s position as a global hub for blockchain and digital asset innovation, attracting both retail and institutional investors.

Looking ahead, the market remains in a state of anticipation for further guidance on U.S. interest rate policy. The Federal Reserve’s upcoming decision, along with macroeconomic indicators such as U.S. unemployment claims, will be critical in determining the direction of Bitcoin and the broader crypto market. While the current trend suggests a short-term correction, long-term fundamentals—including increased institutional interest and regulatory progress in key markets—continue to support a bullish outlook for digital assets.

Source:

[1] Investors Withdraw Over $1 Billion from Bitcoin ETFs (https://forklog.com/en/investors-withdraw-over-1-billion-from-bitcoin-etfs/)

[2] Record ETP Outflows Shake Bitcoin And Ethereum (https://www.cointribune.com/en/record-etp-outflows-shake-bitcoin-and-ethereum/)

[3] Trakx Weekly Update: CEX Rally Steals the Spotlight Amid ... (https://trakx.io/resources/weekly-update/cex-rally-steals-the-spotlight-amid-eth-strenght-august-25-2025/)

[4] Asian High-Net-Worth Investors Are Piling Into Crypto at ... (https://www.ccn.com/news/crypto/asian-high-net-investors-crypto-record-pace/)

[5] Bitcoin Weekly Forecast: BTC correction amid over $1 ... (https://www.mitrade.com/insights/news/live-news/article-5-1061457-20250822)