Bitcoin News Today: Institutional Investors Bet Big on Ethereum ETFs, Outpacing Bitcoin

US Bitcoin ETFs have emerged as a dominant force in the cryptocurrency market, capturing 13.1% of total spot trading volume following the US presidential election, according to research from CryptoQuant. These funds now regularly generate $5 billion to $10 billion in daily trading activity, rivaling and occasionally surpassing major crypto exchanges like Binance and Coinbase. On high-volatility days, trading volumes through these ETFs have reached as high as $10 billion. BlackRock’s iShares Bitcoin Trust (IBIT) leads the pack, with $83.54 billion in net assets as of August 27 after a $50.87 million single-day inflow. In total, 11 US-based spot Bitcoin ETFs collectively manage $144.6 billion in assets, representing 6.5% of Bitcoin’s total market capitalization [6].

Ethereum ETFs, however, have recently outpaced their Bitcoin counterparts in terms of inflows. In the past five trading days, Ethereum ETFs attracted $1.83 billion in net inflows, which is over 10 times the $171 million inflows seen in Bitcoin ETFs during the same period. BlackRock’s ETHA led the charge, pulling in $262.6 million on August 27 alone. Ethereum ETFs have now absorbed $13.6 billion since their launch in July 2024, with nearly one-third of that total coming in just the past few weeks. As of August 27, Ethereum ETFs hold $30.17 billion in net assets, or 5.4% of Ether’s total market capitalization [1].

The rapid inflows into Ethereum ETFs have been driven largely by institutional investors. Data from Bloomberg Intelligence shows that investment advisers are the largest buyers of Ethereum ETFs, having invested more than $1.3 billion in Q2, a 68% increase from the previous quarter. These advisers have acquired 539,000 ETH in the process, highlighting a growing institutional confidence in the asset class. Vincent Liu, Chief Investment Officer at Kronos Research, notes that cryptocurrencies are increasingly being viewed as a long-term diversification tool alongside equities and bonds [2].

The ETF inflows have also had a measurable impact on Ethereum’s price performance. In the past week, Ether climbed 5% from Tuesday’s low, outpacing Bitcoin’s 2.8% gain. Ethereum’s outperformance is partly due to the increased institutional buying and renewed confidence in its long-term utility. Alex Thorn, head of research at Galaxy, has noted that the recent capital rotation into Ethereum is reminiscent of prior market cycles, where Bitcoin whales have shifted capital into Ether. This shift has contributed to Ethereum hitting an all-time high of $4,955 on August 24 [8].

Analysts remain cautious about the potential risks associated with these large inflows. Research from Sentora highlights the structural challenges posed by corporate Bitcoin treasury strategies, which involve borrowing fiat to acquire non-yielding assets. These strategies are classified as “negative-carry trades” with no yield cushion or risk-parity ballast, increasing the risk of insolvency during credit cycles. The analysis warns that most companies involved in such strategies are likely to fail when interest rates rise or Bitcoin’s price stagnates. For long-term success, the study suggests that Bitcoin must evolve from “digital property” to “digital capital” that generates yield without custodianship requirements [6].

Despite these concerns, the institutional adoption of both Bitcoin and Ethereum ETFs continues to grow. While Ethereum ETFs have outperformed Bitcoin ETFs in recent weeks, the latter still hold a much larger share of total assets. Bitcoin ETFs now manage $144.6 billion in assets, while Ethereum ETFs hold $30.17 billion. BlackRock remains the dominant player in both asset classes, with its IBIT and ETHA funds controlling $83.54 billion and $17.19 billion in net assets respectively [1].

Source:

[1] Ethereum ETFs Shock Wall Street With $307M Inflows In One (https://finance.yahoo.com/news/ethereum-etfs-shock-wall-street-200853321.html)

[2] Ethereum ETF Inflows Overtake Bitcoin ETFs by Nearly 10x in ... (https://finance.yahoo.com/news/ethereum-etf-inflows-overtake-bitcoin-110746206.html)

[3] 6 Weeks Straight: Ethereum ETFs Leave Bitcoin in the Dust (https://cryptopotato.com/6-weeks-straight-ethereum-etfs-leave-bitcoin-in-the-dust/)

[4] US ETFs now a major source of Bitcoin spot trading volume (https://cointelegraph.com/news/bitcoin-etfs-take-share-spot-trading-volume)

[5] US ETFs now a major source of Bitcoin spot trading volume (https://www.fxstreet.com/cryptocurrencies/news/us-etfs-now-a-major-source-of-bitcoin-spot-trading-volume-cryptoquant-202508290731)

[6] US Bitcoin ETFs Dominate Spot Volume with $10B Daily ... (https://cryptonews.com/news/us-bitcoin-etfs-dominate-spot-volume-with-10b-daily-trading-is-this-dangerous/)

[7] Ethereum to $7500? Rotation into Ether ETFs seen to drive ... (https://www.dlnews.com/articles/markets/why-ethereum-rotation-seen-to-drive-price-higher-in-2025/)