Bitcoin News Today: Institutional Exodus: $1 Billion Flees Crypto ETFs Amid Dollar Shift

Ether’s 14-Week Inflow Streak Ends With $238 Million Exit as Bitcoin ETFs Bleed $1.17 Billion

On August 19, 2025, spot Ethereum ETFs recorded a $422 million outflow, marking the second-largest single-day withdrawal since the launch of the products earlier this year. This event ended a 14-week continuous inflow streak for the Ether-based funds. The outflows coincided with a broader market correction, as the price of Ethereum fell over 8% in the previous week, closing at approximately $4,200. Fidelity’s FETH led the exodus with a $156.32 million outflow, while Grayscale’s two Ethereum products lost more than $200 million combined [2].

Meanwhile, Bitcoin ETFs also experienced significant outflows on the same day, totaling $523 million. Fidelity’s FBTC and Grayscale’s GBTC were among the hardest hit, losing $246.9 million and $115.53 million, respectively. BlackRock’s IBIT fund, which holds a record 748,968 BTC, did not register any inflows or outflows [1]. The redemptions appear to reflect a shift in institutional investor behavior, with analysts suggesting that funds are being reallocated into cash or treasury bonds amid renewed concerns about inflation, a strengthening US dollar, and uncertainty surrounding Federal Reserve policy [1].

The outflows contributed to downward pressure on crypto prices, with Bitcoin falling to as low as $112,000—its lowest level since early August—over the 24-hour period. Ether also dipped, trading at $4,208 at the time of reporting. Analysts linked the price movements to the outflows from ETFs, which serve as a proxy for investor sentiment in the broader market. The market is now awaiting remarks from Fed Chair Jerome Powell at the Jackson Hole symposium on August 21, which is expected to play a pivotal role in shaping the next phase of investor activity [1].

Despite the recent outflows, the total assets under management in US-based crypto ETFs remain at historic levels. Bitcoin ETFs collectively manage $14.6 billion, while Ethereum ETFs hold approximately $2.6 billion in assets. These figures underscore continued institutional interest in digital assets, even as short-term market corrections lead to redemptions [2].

CryptoQuant highlighted the record accumulation of 1.2 million BTC by Bitcoin ETFs, reflecting strong institutional confidence in the leading cryptocurrency. BlackRock and Fidelity together control more than 75% of the total Bitcoin in ETFs, with BlackRock’s IBIT fund managing the largest portion. Grayscale’s GBTC, once the dominant player with over 620,000 BTC, now holds only 180,576 BTC, signaling a transition in the ETF landscape [1].

Looking ahead, attention is turning to the potential approval of new spot ETFs tied to tokens such as XRP, Solana, and Litecoin. Nate Geraci of NovaDius Wealth suggested that regulatory clarity is expected to emerge within two months, potentially opening the “floodgates” for a new wave of crypto products. With over 90% of surveyed market participants expecting a rate cut by the Federal Reserve, the sector remains in a period of flux, with volatility likely to persist in the near term [1].

Source:

[1] Bitcoin and Ethereum ETFs See $1 Billion Outflow in a Day (https://forklog.com/en/bitcoin-and-ethereum-etfs-see-1-billion-outflow-in-a-day/)

[2] US Bitcoin and Ethereum ETFs face $1 billion outflow amid ... (https://cryptoslate.com/us-bitcoin-and-ethereum-etfs-face-1-billion-outflow-amid-market-dip/)