Bitcoin News Today: Investor Sentiment Shifts as Bitcoin ETFs Reverse Outflow Streak

Bitcoin spot exchange-traded funds (ETFs) ended a six-day streak of net outflows on Aug. 20, 2025, with $219 million in inflows, reversing a trend that had seen over $1.17 billion leave the funds since Aug. 15. The rebound was led by Fidelity’s Wise Origin Bitcoin Fund (FBTC), which attracted $65.56 million, and BlackRock’s iShares Bitcoin Trust (IBIT), which gained $63.38 million. These inflows marked a shift in investor sentiment following a week of redemptions driven by a broader market correction and uncertainty around U.S. monetary policy. The outflows had accelerated after Bitcoin hit a record high of $124,128 on Aug. 14 before retreating to $110,186 by the end of the week [3].

The recent sell-off, the second-largest weekly outflow since the launch of spot Bitcoin ETFs, saw individual funds like Fidelity’s FBTC and BlackRock’s IBIT bear the brunt of the redemptions. On Aug. 19 alone, FBTC faced a $246.9 million outflow, while IBIT lost $220 million. The total outflow of $1.17 billion between Aug. 19 and Aug. 22 coincided with a drop in Bitcoin’s price below $111,000, which exacerbated liquidation pressures from leveraged long positions [4].

Despite the recent outflows, Bitcoin ETFs remain a significant segment of the digital asset market. As of Aug. 20, the total assets under management (AUM) across spot Bitcoin ETFs stood at approximately $53.8 billion, with Fidelity and BlackRock dominating the inflow figures. The Fidelity and BlackRock funds, which charge management fees of 0.25% and 0.20%, respectively, continue to attract a large share of institutional and retail capital. The average daily net inflow for these ETFs over the reporting period was $28.9 million for FBTC and $2.9 million for IBIT, according to Farside Investors data [1].

The broader market sentiment began to shift after U.S. Federal Reserve Chair Jerome Powell’s comments at Jackson Hole suggested a potential 25-basis-point rate cut in September, easing concerns over tighter monetary conditions. This shift was reflected in the Crypto Fear & Greed Index, which rose to a “Greed” score of 60, indicating a stronger appetite for risk among market participants. However, the ETF inflows on Aug. 20 were seen as a temporary rebound rather than a reversal of the longer-term trend of capital rotation within the crypto space [3].

While Bitcoin ETFs faced outflows, Ethereum ETFs attracted significant inflows during the same period, with Fidelity and BlackRock funds capturing the lion’s share of the demand. Ethereum’s price rally from $4,225 to an intraday peak of $4,883 contributed to the inflows, with Ethereum ETFs recording over $625 million in capital inflows between Aug. 21 and Aug. 22. Analysts noted that Ethereum’s structural advantages—such as its staking yield of 3–6% and deflationary supply model—were increasingly attracting institutional investors who saw it as a more attractive allocation vehicle compared to Bitcoin [4].

The divergence in ETF flows between Bitcoin and Ethereum highlights a broader reallocation within the crypto asset class. Institutional investors are not abandoning Bitcoin but are instead diversifying their exposure. This trend is further supported by the activities of major whales and corporate treasuries, with some large investors selling Bitcoin while accumulating Ethereum. For example, an unknown trader on decentralized platform Unit sold 19,660 BTC while acquiring 455,672 ETH over four days, pushing 24-hour spot volumes to $3.2 billion. Meanwhile, BitMine added $800 million worth of ETH to its holdings, while Michael Saylor’s Strategy added 3,081 BTC [4].

The market’s mixed signals reflect the evolving nature of institutional participation in digital assets. While Bitcoin ETFs remain under pressure, Ethereum’s performance and structural advantages are reshaping investor preferences. With the U.S. Federal Reserve signaling potential rate cuts, the next phase of ETF inflows could depend on how investors interpret monetary policy and the relative strength of different crypto assets. For now, the $219 million inflow on Aug. 20 serves as a sign of resilience but may not be indicative of a sustained reversal in capital flows [3].

Source:

[1] Bitcoin ETF Flow (US$m) (https://farside.co.uk/btc/)

[2] Total Bitcoin Spot ETF Net Inflow (BTC) (https://www.coinglass.com/bitcoin-etf)

[3] Spot Bitcoin ETFs end six-day outflow streak with $219M ... (https://cointelegraph.com/news/spot-bitcoin-etfs-break-outflow-streak-219m-fidelity-blackrock)

[4] Bitcoin ETF Outflows Hit $1.17B as BTC Drops ... - Trading News (https://www.tradingnews.com/news/bitcoin-etfs-bleed-117b-usd-outflow)