Bitcoin News Today: Institutional Capital Shifts: From Bitcoin to Ethereum as ETPs Slow

Bitcoin exchange-traded products (ETPs) have accumulated a total of 1.47 million BTC as of September 2, 2025, representing approximately 7% of Bitcoin’s maximum supply of 21 million. This accumulation has been led by U.S.-based ETFs, which hold over 1.29 million BTC across 11 funds, according to data from HODL15Capital. BlackRock’s iShares Bitcoin Trust (IBIT) is the largest holder with 746,810 BTC, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with just under 199,500 BTC [1].

The growth of Bitcoin ETPs has been notable, with global ETPs adding more than 170,000 BTC since the beginning of the year, valued at around $18.7 billion. However, the pace of accumulation has slowed in recent months. CoinShares data for August showed net outflows of $301 million from Bitcoin ETPs, while Ethereum-based funds attracted $3.95 billion in inflows during the same period [1].

Investor sentiment has shifted in favor of Ethereum, with several large holders moving capital into the altcoin ahead of anticipated developments in Ethereum-related ETFs. On one occasion, a major whale exchanged 4,000 BTC for approximately 97,000 ETH, increasing their Ether holdings to an estimated $3.8 billion. According to Arkham Intelligence, nine whales collectively moved $456 million from Bitcoin to Ethereum, likely to lock in profits amid a seasonal slowdown in Bitcoin activity [1]. The shift in asset allocation reflects a broader trend of capital rotation into other crypto assets, particularly during periods of perceived weakness in Bitcoin’s performance.

Analysts have offered varying perspectives on the future of Bitcoin. PlanC, a well-known analyst, has suggested that Bitcoin’s path to $1 million may be a slow, seven-year process rather than a rapid rally. Delphi Digital has noted that the upcoming Federal Reserve rate cut could result in a short-term spike in Bitcoin’s price followed by a correction, unless the price remains subdued before the decision. Historical data from 2019 and 2024 shows mixed outcomes for Bitcoin in the context of rate cuts, with some instances of a “sell the news” effect and others where sustained rallies followed [1].

The broader crypto landscape is also evolving, with the U.S. Securities and Exchange Commission (SEC) currently reviewing 92 crypto ETF applications. Bloomberg Intelligence analyst James Seyffart reported that most of these applications, particularly those related to Solana and XRP, are expected to receive final decisions by October. The rapid increase in ETF applications—from 72 in April to 92 in August—highlights the growing institutional interest in crypto assets and the potential for fresh capital inflows [1].

Meanwhile, the broader market is experiencing significant shifts in portfolio construction. BlackRock’s investment strategies for the fall of 2025 emphasize the need for diversification in the context of a changing market environment. With traditional diversification tools like stock/bond correlations becoming less reliable, investors are increasingly turning to alternatives such as liquid alternatives, commodities, and digital assets. BlackRock has highlighted the potential of Bitcoin as a diversification tool, despite its volatility, due to its unique risk-return characteristics and low correlation with traditional assets [2].

Source:

[1] Bitcoin ETPs Now Hold Over 1.47 Million BTC, 7% of Total Supply (https://cryptorank.io/news/feed/b68ae-bitcoin-etps-now-hold-over-1-47-million-btc-7-of-total-supply)

[2] 2025 Fall Investment Directions: Rethinking diversification (https://www.blackrock.com/us/financial-professionals/insights/investment-directions-fall-2025)