Bitcoin ETFs Face $1.17B Outflows as Prices Slide Toward $111,000
Spot Bitcoin ETFs just endured their second-largest weekly redemptions on record, bleeding $1.17 billion between August 19–22. The outflows coincided with BTC’s drop from $117,000 resistance down to $111,600, with a flash crash briefly pushing prices below $111,000. The liquidation of more than $150 million in leveraged long positions, reported by Glassnode, amplified the decline. Fidelity’s FBTC led the exodus with $246.9 million withdrawn in a single day, while BlackRock’s IBIT saw $220 million in redemptions. Together, these two funds accounted for nearly half of the losses.
Ethereum ETFs Record $625M Inflows as BTC Loses Institutional Traction
While Bitcoin bled capital, Ethereum ETFs flipped positive with $287.6 million in inflows on August 21 and another $337.7 million on August 22, led by Fidelity’s FETH and BlackRock’s ETHA, which absorbed more than $240 million across the two sessions. ETH’s rally from $4,225 to an intraday peak of $4,883 helped fuel institutional appetite. By July, Ethereum ETFs already commanded $9.4 billion in AUM, equivalent to 5.31% of circulating ETH. The contrast is striking: Bitcoin ETFs shed close to $2 billion in a week, while ETH funds drew in over half a billion in just two days.
Macro Shifts: Powell’s Dovish Pivot Sparks Late-Week ETF Inflows
Federal Reserve Chair Jerome Powell’s comments at Jackson Hole provided a temporary floor for digital assets. Powell signaled a potential 25-basis-point cut in September, easing fears of tighter monetary conditions. The shift drove $594 million back into crypto ETPs late in the week, though Bitcoin ETFs remained net negative. Analysts noted that ETH captured a disproportionate share of the inflows, underscoring the perception that Ethereum offers more upside under looser policy thanks to its 3–6% staking yields and deflationary supply model.
Whale Rotation Deepens the ETF Divide Between BTC and ETH
Whale activity added another layer to the ETF divergence. On decentralized platform Unit, an unknown trader sold 19,660 BTC worth $2.2 billion, while simultaneously acquiring 455,672 ETH over four days. This rotation pushed 24-hour spot volumes to $3.2 billion, exceeding Coinbase and Bybit combined. Corporate treasuries mirrored this trend: BitMine accumulated $800 million worth of ETH, lifting its holdings to 1.7 million ETH, while Michael Saylor’s Strategy added 3,081 BTC, bringing reserves to 632,457 BTC. The flows reveal a broader pattern — Bitcoin whales are distributing, while Ethereum is being accumulated.
On-Chain Signals Put Bitcoin Support at $106,000
Bitcoin’s short-term holder realized price now sits at $106,000, marking a crucial support zone if selling pressure continues. Long-term holder realized price remains anchored at $36,500, underscoring how deeply entrenched older capital remains. BTC’s failure to hold above $113,000–$117,000 resistance highlights the reliance on ETF inflows to sustain momentum. Without renewed demand from institutional funds, a retest of $106,000 becomes increasingly likely. In contrast, Ethereum’s MVRV ratio at 2.15 shows investors are sitting on over 2x unrealized gains, yet ETF inflows suggest institutions remain comfortable holding through profit-taking cycles.
Institutional Sentiment Shifts: Reallocation Within Crypto, Not an Exit
The ETF flows illustrate a crucial point: institutions are not abandoning digital assets altogether — they are reallocating. Bitcoin ETFs, once seen as the undisputed institutional on-ramp, now face heavy distribution. Ethereum ETFs, with their yield mechanics and regulatory clarity under the CLARITY Act, are emerging as the preferred allocation vehicle. The six-day, $2 billion outflow streak for BTC funds shows declining conviction, while ETH’s $625 million surge in inflows demonstrates rising confidence. This divergence signals that institutional portfolios are evolving into multi-asset crypto strategies rather than relying solely on Bitcoin.
