Bitcoin News Today: Institutional Capital Shifts: Ethereum Outpaces Bitcoin in ETF Inflows

Bitcoin exchange-traded products (ETPs) currently hold over 1.47 million BTC, representing approximately 7% of the total 21 million Bitcoin supply. This figure includes holdings from 11 U.S.-based ETFs, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) being the largest holder, possessing 746,810 BTC. Fidelity’s Wise Origin Bitcoin Fund (FBTC) holds the second-largest amount, at nearly 199,500 BTC. Over the past year, global Bitcoin ETPs have added more than 170,000 BTC, valued at approximately $18.7 billion, highlighting the growing institutional interest in the digital asset.

The accumulation of Bitcoin by ETPs has been a gradual process, with significant inflows occurring between December 31, 2024, and the latest data collection period. However, the pace of demand appears to be slowing, with a net outflow of $301 million recorded for August. This contrasts sharply with Ethereum ETPs, which saw $3.95 billion in inflows during the same period, indicating a potential shift in institutional preferences. BlackRock’s Ethereum ETF (ETHA) has played a central role in this trend, recording $265.74 million in inflows on August 27 alone.

The outflows from Bitcoin ETPs coincide with broader market trends. Institutional investors and investment advisers are increasingly rotating capital from Bitcoin to Ethereum, driven by perceived stronger fundamentals and potential for long-term value. For instance, one Bitcoin whale recently sold 4,000 BTC and converted it into 96,859 ETH over a 12-hour period. According to Arkham, nine such whales have collectively shifted $456 million from Bitcoin into Ethereum. This movement reflects a broader sentiment that Ethereum is becoming a more attractive long-term investment compared to Bitcoin.

BlackRock’s Ethereum ETF (ETHA) has been the most popular product in this category, attracting over $13 billion in inflows since its launch 13 months ago. The fund’s performance has been particularly strong in recent weeks, with $1.6 billion in trading volume and 57,584 ETH in net inflows on August 27 alone. This marks the fifth consecutive day of inflows for the fund. Investment advisers have been the primary buyers of Ethereum ETFs, with Bloomberg Intelligence reporting that they invested $1.3 billion—equivalent to 539,000 ETH—in the second quarter, representing a 68% increase from the previous quarter.

The divergence in investor behavior is also reflected in price performance. Ethereum has outpaced Bitcoin in recent weeks, gaining 5% from its low on Tuesday, compared to just 2.8% for Bitcoin. Analysts attribute this to growing confidence in Ethereum’s potential as a long-term diversification tool within traditional investment portfolios. Vincent Liu, CIO at Kronos Research, noted that as more advisers adopt Bitcoin and Ethereum ETFs, cryptocurrencies are increasingly being viewed as a strategic asset class alongside equities and bonds.

Source: [1] Bitcoin ETPs now hold 7% of Bitcoin's maximum supply - ADVFN (https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96740912/bitcoin-etps-now-hold-7-of-bitcoin-039-s-maximum) [2] Ethereum ETF Inflows Overtake Bitcoin ETFs by Nearly 10x in ... (https://finance.yahoo.com/news/ethereum-etf-inflows-overtake-bitcoin-110746206.html) [3] Asia Morning Briefing: August ETF Flows Show the ... (https://www.coindesk.com/policy/2025/09/01/asia-morning-briefing-august-etf-flows-show-the-massive-scale-of-btc-to-eth-rotation) [4] Crypto funds see $2.5B inflows despite falling BTC, ETH ... (https://cointelegraph.com/news/crypto-etp-inflows-2-48b-bitcoin-ether-etf-dominance) [5] Bitcoin ETPs now hold 7% of Bitcoin's maximum supply (https://cointelegraph.com/news/bitcoin-etps-hold-7-percent-bitcoin-total-supply) [6] Best Bitcoin ETFs: Top funds for buying Bitcoin - Yahoo Finance (https://finance.yahoo.com/news/best-bitcoin-etfs-top-funds-163832792.html)