Bitcoin ETF Inflows Surge $332M as BTC-USD Price Reclaims $111K, Ethereum Funds Reverse

Bitcoin ETF Inflows Surge to $332M, Ethereum Funds Reverse

Spot Bitcoin (BTC-USD) ETFs recorded $332.7 million in net inflows on September 2, reversing weeks of Ethereum-led dominance. Fidelity’s FBTC led the way with $132.7 million of new allocations, followed by BlackRock’s IBIT with $72.8 million. Other issuers including Grayscale, Ark 21Shares, Bitwise, VanEck, and Invesco also posted positive flows, confirming broad-based institutional participation. At the same time, Ethereum ETFs suffered $135.3 million in outflows, led by Fidelity’s FETH at -$99.2 million and Bitwise’s ETHW at -$24.2 million.

Macro Rotation: From Ethereum Yield to Bitcoin Stability

August saw a dramatic divergence: Ethereum ETFs attracted $3.87 billion while Bitcoin ETFs bled $751 million. Analysts attributed the imbalance to ETH’s staking yield, regulatory clarity, and rising corporate treasury adoption. Now the rotation is shifting back. Institutional desks appear to be rebalancing into Bitcoin for perceived safety, especially with BTC trading around $111,000 and defending the $108,000 technical support zone. Ethereum, by contrast, slipped 1% on September 2 to $4,327, facing pressure toward $3,400 if selling accelerates.

Institutional Allocations: Fidelity and BlackRock Dominate

The concentration of inflows highlights the dominance of Fidelity and BlackRock in the ETF race. Fidelity’s FBTC has now absorbed over $130 million in a single session, while BlackRock’s IBIT pulled in nearly $73 million. Smaller issuers like Bitwise, VanEck, and Invesco added modest but positive net allocations. This distribution reflects how institutional allocators prioritize liquidity and brand trust when rotating billions in assets. Total assets under management across crypto ETFs stand near $219 billion, despite market volatility.

Weekly Recovery After $1.4B Outflows

The latest $332.7 million in daily inflows came after crypto funds suffered $1.4 billion in outflows the previous week. A rebound followed with $2.48 billion in net inflows, bringing year-to-date flows to $35.5 billion. Of that, Bitcoin alone accounts for $748 million in fresh inflows in 2025, despite being weighed by heavy redemptions earlier in the year. The resilience shows institutions continue to use ETFs to scale exposure, even in volatile months.

MicroStrategy Adds $449M Bitcoin as Corporate Treasuries Expand

Parallel to ETF allocations, direct corporate treasury purchases are intensifying. MicroStrategy disclosed the acquisition of 4,048 BTC worth $449 million in early September, pushing total holdings above 200,000 BTC. Other treasuries added a net 3,102 BTC ($336M) on September 1 alone. These moves strengthen the thesis that Bitcoin remains the default institutional reserve, while Ethereum’s treasury growth has lagged. The contrast underscores why ETFs are reflecting a portfolio tilt back toward BTC.

Price Action: Digital Gold Narrative Reignited

The ETF flows coincided with Bitcoin rebounding from $107,500 to $111,000, reclaiming its 20-week SMA, a key level for trend confirmation. Analysts point to the resurgence of the “digital gold” narrative, with BTC benefiting from gold’s own rally to fresh highs above $3,500/oz. With global uncertainty persisting, allocators are viewing Bitcoin as the premier hedge. On technical charts, the next upside marker sits at $119,000, with inflows reducing near-term selling pressure.

Ethereum ETFs Bleed as Profit-Taking Sets In

Ethereum funds are now in retreat. Fidelity’s FETH lost nearly $100 million in one day, adding to $164 million in outflows on August 29 alone. ETH’s inability to sustain inflows has raised concerns that its strong August was an anomaly driven by short-term treasury positioning. RSI and volume data confirm weakening momentum, with analysts expecting ETH to test the 21-week EMA near $3,400 before staging another attempt higher. This weakness is feeding the capital rotation into Bitcoin ETFs.

Strategic Outlook: Bitcoin ETF Momentum Into Q4

ETF data suggests a structural shift. After ETH dominated inflows in August, September begins with Bitcoin reasserting itself. Institutions appear to be positioning for stability into year-end, particularly with BTC maintaining 56% market dominance. If inflows persist, Bitcoin’s ETF-driven bid could sustain price above $110,000, with breakout potential toward $119,000–$125,000 in Q4. Ethereum may still benefit from staking yields, but ETF flows indicate its relative advantage is narrowing.

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