Bitcoin News Today: Investors Flee Bitcoin ETFs, Flock to Ethereum

Bitcoin ETF inflows have faced pressure in recent weeks, with Ethereum emerging as a stronger performer in capturing institutional capital. U.S.-listed spot Ethereum ETFs absorbed nearly $1.83 billion in inflows over the past week, significantly outpacing the $171 million captured by Bitcoin ETFs. This trend has continued in the last three weeks, where Ethereum ETFs have seen $13.6 billion in inflows, while Bitcoin ETFs have experienced over $800 million in outflows. On August 27, BlackRock’s iShares Ethereum Trust (ETHA) led the inflow surge with $262.6 million, followed by Fidelity’s FETH with $20.5 million and Grayscale’s ETHE with $5.7 million, a rare positive session for the latter [2].

At present, Ethereum ETFs hold over $30.17 billion in net assets, accounting for 5.4% of Ethereum’s total market cap. In comparison, Bitcoin ETFs manage $144.6 billion in assets under management, representing 6.5% of Bitcoin’s market capitalization. The flow dynamics highlight a decisive shift in institutional demand toward Ethereum. BlackRock remains a dominant player in both markets, with its iShares Bitcoin Trust (IBIT) holding $83.5 billion in AUM and its Ethereum ETF (ETHA) amassing over $17 billion in assets. Fidelity, too, holds significant exposure through its FBTC ETF, though its Bitcoin inflows have slowed compared to its Ethereum counterpart [2].

Financial advisers are increasingly becoming the largest identifiable holders of both Bitcoin and Ethereum ETFs. According to SEC 13F filings, advisers invested more than $1.3 billion in Ethereum ETFs in Q2, amounting to 539,000 ETH, a 68% increase from the previous quarter. For Bitcoin, advisers now control $17 billion across 161,000 BTC, nearly double the exposure of hedge fund managers. Bloomberg analysts note that this data represents only 25% of the total ETF holdings, suggesting that retail and international flows are even more significant. Fox Business has estimated that adviser allocations could unlock trillions in new crypto ETF inflows as portfolio diversification strategies expand [2].

The market performance of the two cryptocurrencies also reflects the divergence in institutional interest. Ethereum has rallied 18.5% in the past month, breaking above $4,500 and consolidating near $4,560, supported by strong derivatives positioning. In contrast, Bitcoin has declined by 6.4%, retreating from its $120,000 peak to trade around $113,300. This underperformance is attributed to $1.3 billion in outflows in early August and a $1.17 billion weekly outflow recorded in mid-August, the worst since February. The ETH/BTC ratio has climbed above 0.04, its strongest level this year, further emphasizing Ethereum’s relative strength [2].

Looking ahead, the strategic outlook for Bitcoin ETFs remains cautious. Despite maintaining a dominant market position with $144 billion in AUM, the recent inflow figures suggest a medium-term bearish tilt for Bitcoin relative to Ethereum. Institutional portfolios are rebalancing in favor of Ethereum, and without renewed catalysts—such as expanded distribution of U.S. spot Bitcoin ETFs or macroeconomic-driven risk-on rallies—Bitcoin could continue to lag behind. Investors holding BTC through ETFs are advised to monitor the $110,000–$112,000 support level closely and watch for adviser-led reallocation flows. While the structural adoption case for Bitcoin remains intact, the near-term momentum favors Ethereum [2].