Bitcoin News Today: Investor Sentiment Splits as Bitcoin ETFs Bleed $972M in Outflows

Spot Bitcoin ETFs experienced a significant outflow streak from August 15 through August 23, with the largest single-day outflow of $523.31 million recorded on August 19. This outflow trend followed a sharp correction in Bitcoin’s price after the asset hit an all-time high of $124,128 on August 14, only to drop to $110,186 by August 23, according to CoinGecko data. The outflows were attributed to a “polarized” investor sentiment regarding U.S. monetary policy, as noted by James Butterfill, head of research at CoinShares. The pessimism was driven by concerns over the Federal Reserve’s stance, with $2 billion in outflows recorded early in the week [3].

However, on August 26, spot Bitcoin ETFs ended a six-day outflow streak, recording $219 million in net inflows. Fidelity and BlackRock led the rebound, with Fidelity’s Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT) bringing in $65.56 million and $63.38 million, respectively [1]. This marked a significant shift in sentiment after a prolonged outflow period, which some analysts had linked to Bitcoin’s price struggles and broader macroeconomic uncertainties.

In contrast, Ether (ETH) ETFs have continued to attract strong demand, posting $3.23 billion in inflows this month and maintaining a positive trend since April. The disparity in ETF flows between Bitcoin and Ether is evident, with Ethereum-based products capturing more investor interest during a period of market volatility. According to James Butterfill, Ethereum ETFs have seen 26% of total inflows year-to-date relative to assets under management, compared to just 11% for Bitcoin [3].

The recent outflow pattern for Bitcoin ETFs has raised concerns among analysts, who suggest that significant inflows are needed to prevent a second-largest monthly outflow on record. As of August 26, these funds had recorded a net outflow of $972 million, trailing only February’s record outflow of $3.56 billion. Markus Thielen, founder of 10x Research, emphasized that without substantial capital inflows, Bitcoin’s price movement toward $150,000 would remain unlikely. Thielen noted that an additional $173 billion in inflows would be required between now and year-end to achieve this price target [2].

The diverging ETF performance between Bitcoin and Ether was further highlighted by the largest outflows for Ethereum ETFs occurring on August 20, with $430 million in outflows recorded that day. Despite this, Ethereum saw a mid-week recovery in sentiment, which Butterfill attributed to Federal Reserve Chair Jerome Powell’s dovish remarks at the Jackson Hole Symposium. The impact of these comments was more pronounced in Ethereum, with $440 million in outflows recorded for the week compared to over $1 billion for Bitcoin [3].

The contrasting investor behavior between the two leading cryptocurrencies underscores the ongoing debate around macroeconomic narratives versus real capital flows. While some analysts argue that Bitcoin’s long-term trajectory remains intact, the immediate pressure on ETF inflows suggests that short-term volatility may continue. The recent shift in investor sentiment, particularly following central bank signals, remains a critical factor shaping the performance of both Bitcoin and Ethereum ETFs.

Source:

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

[2] Bitcoin ETFs Need Almost $1B Inflows to Sidestep Second- (https://www.coindesk.com/markets/2025/08/26/bitcoin-etfs-need-to-pull-in-nearly-usd1b-this-week-to-avoid-second-biggest-monthly-outflow-on-record)

[3] Crypto ETPs post $1.4B losses amid recent Bitcoin, Ether (https://cointelegraph.com/news/crypto-funds-1-4-billion-outflows-bitcoin-ethereum)