Ethereum News Today: Institutional Buyers Shift Focus as Ethereum ETFs Surpass Bitcoin

Bitcoin spot ETFs saw a net inflow of $178.9 million on August 29, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the charge by attracting $63.7 million in new capital. This marked a significant turnaround after weeks of outflows, with U.S. spot Bitcoin ETFs having recorded $1.17 billion in redemptions in the prior week. The recovery reflects a renewed institutional appetite for Bitcoin, particularly following recent market corrections and the stabilization of broader equity markets.

BlackRock continued to demonstrate aggressive buying activity in both Bitcoin and Ethereum during late August. On August 27, the firm added 413 BTC and 73,864 ETH to its ETF holdings, contributing to a two-day total of nearly $750 million in crypto purchases. These acquisitions were part of a broader trend of institutional accumulation, with BlackRock’s ETHA fund alone pulling in $262.6 million in Ethereum inflows on August 27—highlighting a continued shift in investor sentiment toward the second-largest cryptocurrency [2].

The inflows into Ethereum ETFs have consistently outpaced those of Bitcoin in recent weeks. During the five-day period ending August 29, Ethereum ETFs saw total inflows of $1.83 billion, nearly ten times the $171 million in net inflows for Bitcoin ETFs over the same period. This trend is indicative of a growing confidence in Ethereum among institutional investors, with BlackRock’s ETHA fund now managing $17.19 billion in assets—more than half of the $30.17 billion in total Ethereum ETF assets under management [2].

BlackRock’s iShares Ethereum Trust has also become one of the largest custodians of Ether, with holdings now reaching 3.6 million ETH—nearly catching up to Coinbase, which holds 3.8 million ETH. This shift in custody patterns underscores the growing role of ETFs in institutional crypto markets and signals a structural realignment in how digital assets are held and managed. Binance remains the largest ETH custodian with 4.7 million tokens, but BlackRock’s rapid accumulation has narrowed the gap significantly [4].

On the Bitcoin front, the market has experienced a modest rebound, with prices stabilizing near $111,000 after a 7% decline over the previous two weeks. BlackRock’s iShares Bitcoin Trust (IBIT) has played a pivotal role in stabilizing the asset class, with inflows surging to $63.7 million on August 29 and $50.9 million in net inflows the prior day. This renewed buying pressure contrasts with a decline in exchange inflows, with data from CryptoQuant showing historically low deposits on major platforms like Binance and Coinbase—suggesting reduced selling pressure from both retail and institutional participants [4].

The growing inflows into crypto ETFs have also led to tighter supply conditions for both Bitcoin and Ethereum. With ETFs absorbing significant portions of the circulating supply, the market is experiencing a shift toward longer-term holding strategies. This dynamic is supported by rising institutional adoption, as investment advisers now represent the largest buyers of Ether ETFs, according to Bloomberg Intelligence. These advisers added 539,000 ETH in Q2 2025, representing a 68% increase from the previous quarter [3].

Source: [1] title1 (https://finance.yahoo.com/news/blackrock-buys-dip-413-btc-124123165.html) [2] title2 (https://finance.yahoo.com/news/ethereum-etfs-shock-wall-street-200853321.html) [3] title3 (https://finance.yahoo.com/news/ethereum-etf-inflows-overtake-bitcoin-110746206.html) [4] title4 (https://cointelegraph.com/news/blackrock-btc-etf-balance-flips-coinbase-is-eth-next) [5] title5 (https://cointelegraph.com/news/canary-capital-files-american-made-crypto-etf)