Bitcoin ETF Inflows Rebound – BTC-USD at $108K Adds 3,018 BTC as Ethereum Steals the Spotlight

Bitcoin ETF Inflows Rebound – Institutions Add 3,018 BTC While Ethereum ETFs Dominate Weekly Flows

Bitcoin ETFs are once again in the spotlight after a turbulent August that saw heavy outflows followed by a sudden return of capital. The past week has been marked by a sharp rebound, with spot Bitcoin exchange-traded funds absorbing 3,018 BTC even as BTC-USD slipped below $108,000. This institutional buying has stabilized sentiment, though Ethereum continues to outpace Bitcoin in the ETF race with significantly larger inflows. The divergence in flows highlights a shifting institutional landscape where both assets are pulling capital, but for different reasons.

BTC Price at $108K Meets Mixed ETF Momentum

Bitcoin closed August on a weak note, down 6% for the month, after peaking near $124,000 earlier. Spot ETFs registered their first weekly outflows since June, losing $126.7 million in the final week of the month, trimming total Bitcoin ETF AUM to $139.95 billion — about 6.5% of Bitcoin’s market cap. Still, inflows resumed quickly, with 3,018 BTC added in early September, a sign that institutions are buying into weakness. BlackRock’s IBIT fund once again stood out with $24.6 million in inflows on August 29, while Fidelity’s FBTC and ARK’s ARKB saw redemptions of $66.2 million and $72 million respectively. Since launch in January 2024, Bitcoin ETFs have attracted over $54 billion in net inflows, underscoring their structural importance to market liquidity.

Ethereum ETFs Pull Ahead with $1.4B in Weekly Inflows

The bigger story last week was Ethereum. Spot ETH ETFs posted inflows of $1.4 billion, nearly double Bitcoin’s $748 million, extending a multi-week streak of institutional preference. BlackRock’s ETHA ETF led the surge, securing nearly $968 million in a single week, while Fidelity’s FETH added $109 million. Even with Friday’s $164 million outflow across ETH products, Ethereum’s August tally hit $3.95 billion of net inflows versus Bitcoin’s $301 million in net outflows. This swing has helped ETH rebound 25% from its monthly lows, with prices now around $4,265. The inflow dominance signals investors’ appetite for staking yields and diversification, something BTC ETFs cannot offer.

Regional Breakdown – U.S. ETFs Capture $2.29B

The United States remained the epicenter of ETF activity. Out of the $2.48 billion in global inflows recorded last week across digital asset funds, $2.29 billion came from U.S. products. Switzerland contributed $109 million, Germany $70 million, and Canada $41 million, all positive but minor compared to the U.S. surge. No region reported net outflows, a complete reversal from the prior week when global crypto ETFs bled $1.43 billion. The U.S. dominance reflects both institutional depth and the fact that American-listed ETFs now anchor global Bitcoin trading volumes, with IBIT alone regularly accounting for over half of spot ETF volume.

Altcoin ETFs – Solana and XRP Join the Race

While Bitcoin and Ethereum dominate, smaller crypto ETFs are starting to matter. Solana ETFs logged $177 million in inflows, fueled by speculation that SOL could be next in line for U.S. regulatory approval. XRP ETFs followed closely with $134 million in inflows, boosted by optimism after the SEC formalized listing standards for crypto ETPs in July. These flows are small compared to BTC or ETH but signal a broadening institutional interest. Bloomberg Intelligence notes that there are now 92 pending ETF applications with the SEC, up from 72 in April, with Solana leading at eight filings and XRP close behind with seven.

Institutional Dominance – BlackRock, Fidelity, ARK Control the Flows

BlackRock, Fidelity, and ARK/21Shares accounted for more than 85% of U.S. Bitcoin ETF inflows during the last week of August. BlackRock’s IBIT remains the largest Bitcoin ETF globally, holding over 700,000 BTC valued at more than $80 billion. On the Ethereum side, BlackRock’s ETHA set the pace with nearly $1 billion in inflows, while ARK and Fidelity built steady momentum. Grayscale’s GBTC continues to lose assets as investors rotate into lower-fee ETFs, with another $15 million in outflows. In Canada and Europe, 21Shares, Purpose, and CI Galaxy absorbed most of the $150 million combined inflows, though their impact remains regional.

Technical Risk – BTC Faces ‘Rektember’ and Death Cross

Despite the ETF rebound, technicals suggest Bitcoin is not out of danger. BTC closed August at $109,000 and is now hovering around $108,000, with key support seen at $112,000–$115,000. A failure to hold this zone could send prices back toward $103,000, threatening over $3.2 billion in leveraged long positions. Analysts also highlight a bearish “death cross” on Bitcoin’s MVRV momentum indicator, last seen before the 2021 crash that sent BTC to $15,500. Historically, September is Bitcoin’s weakest month, with an average decline of 3.7% since 2013, earning the nickname “Rektember.”

Institutional Confidence vs Market Volatility

ETF flow data paints a complex picture: Bitcoin ETFs added 3,018 BTC in early September, showing institutional demand remains strong, yet August closed with $751 million in net outflows, a stark reversal from July’s $6 billion in inflows. Ethereum, in contrast, has momentum firmly on its side, with $13.5 billion cumulative inflows since its ETF debut and near-total dominance of August flows. For Bitcoin, the short-term outlook hinges on whether ETF inflows can offset technical weakness and seasonal headwinds. For Ethereum, the question is whether its inflows can sustain the 2:1 advantage over Bitcoin or if profit-taking will slow the pace.

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