Ethereum News Today: Ethereum ETFs Surge as Bitcoin Loses Institutional Favor

Investors have shown a renewed interest in Ethereum (ETH) as spot Ethereum ETFs experienced a significant shift in inflows, contrasting with Bitcoin's six-day outflow streak. According to recent data from CoinShares and Farside Investors, Ethereum ETFs saw $625 million in inflows during the last week of August, reversing earlier outflows and signaling a surge in investor appetite for the second-largest cryptocurrency. This trend marked a notable divergence from Bitcoin ETFs, which faced nearly $1.3 billion in outflows between August 19 and 22, 2025 [2].

James Butterfill, CoinShares’ head of research, highlighted that the Ethereum ETFs' inflows were driven by a sharp mid-week price recovery, with $440 million in outflows recorded during the earlier part of the week. The inflows accelerated on August 21 and 22, with Fidelity’s FETH and BlackRock’s ETHA attracting combined inflows exceeding $240 million. This shift in sentiment coincided with Ethereum's price climbing from $4,225 to nearly $4,883 during the same period [2].

Ethereum’s ETF inflows were further emphasized by year-to-date data, where inflows accounted for 26% of total assets under management for Ethereum compared to only 11% for Bitcoin. This suggests that Ethereum may be gaining favor among institutional and retail investors looking for alternative exposure within the crypto market. The shift in allocation preferences was also evident in the broader market, as Ethereum's ETF inflows mirrored its price momentum, reinforcing upward pressure on the asset [2].

The divergence in investor behavior was attributed in part to the Federal Reserve’s policy tone. A shift in sentiment occurred following Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole Symposium, which were interpreted as more dovish than expected. This caused a partial reversal of earlier outflows, particularly for Ethereum ETFs, as investors reevaluated their positions amid uncertainty over interest rate policies [1]. In contrast, Bitcoin ETFs continued to see significant outflows, with BlackRock’s IBIT and Fidelity’s FBTC recording the largest redemptions on August 19.

Altcoin flows also reflected mixed investor sentiment, with XRP and Solana seeing modest inflows of $25 million and $12 million, respectively. However, Sui and Toncoin faced outflows of $13 million and $1.5 million. This highlights the broader reallocation of capital within the crypto space, with Ethereum standing out as a key beneficiary of recent inflows [1].

The recent developments indicate a potential rotation in institutional and retail capital within the crypto market. While Bitcoin ETFs have historically dominated inflows, Ethereum’s performance over the past two weeks suggests a possible shift in investor preferences. If sustained, this trend could signal a broader reallocation of assets toward Ethereum, particularly as it continues to demonstrate stronger short-term momentum compared to Bitcoin. However, Bitcoin’s larger market capitalization and cumulative assets under management in ETFs remain a significant factor in the overall crypto landscape [2].

Source:

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

[2] Six-day outflow streak hits Bitcoin ETFs, ETH turns positive (https://cryptoslate.com/insights/six-day-outflow-streak-hits-bitcoin-etfs-eth-turns-positive/)