Ethereum ETFs Bleed Amid $301M BTC Inflow, Yet Whales Buy More ETH – Here’s Why
Spot Bitcoin ETFs returned to strong inflows this week, even as Ethereum funds faced sharp withdrawals, showing a shifting dynamic between the two largest cryptocurrencies., Bitcoin spot ETFs posted a net inflow of $301.3 million on September 3, while Ethereum products shed $135.3 million.Bitcoin ETFs Surge While Ethereum ETFs Reverse August MomentumBlackRock’s iShares Bitcoin Trust (IBIT) led the charge with $289.8 million in fresh inflows, bringing its assets under management to $58.6 billion.Grayscale’s Bitcoin Mini Trust followed with $28.8 million, while Ark Invest and 21Shares’ ARKB logged the day’s steepest outflow at $27.9 million. Source: Across the sector, Bitcoin ETFs now hold a combined $145.2 billion in assets, equal to 6.5% of Bitcoin’s market capitalization, with cumulative inflows reaching $54.8 billion.Among Ethereum ETFs, daily net outflows were led by BlackRock’s flagship ETHA fund, which shed $151.9 million. This was followed by Fidelity’s FETH, which added $65.8 million, and Grayscale’s lower-fee Mini Trust, which attracted $62.5 million.Source: Bitwise logged $20.8 million in fresh inflows, while other issuers such as VanEck, Franklin Templeton, 21Shares, and Invesco saw no major changes.Despite the setback, cumulative inflows across all Ethereum ETFs remain positive at $13.34 billion, with BlackRock accounting for about $13 billion of that total.The surge reverses a trend from August, when Ethereum funds dominated activity. ETH products attracted $3.87 billion in inflows last month compared with $751 million in Bitcoin outflows.Trading volumes showed the divergence, with Ethereum ETF activity jumping to $58.3 billion in August, nearly double July’s total, while Bitcoin volumes slipped to $78.1 billion.Ethereum also posted a new all-time high of $4,953 in August, supported by corporate treasuries holding a combined $119.6 billion of ETH by the end of the month.But September is telling a different story. On August 29, Ethereum ETFs logged $164.6 million in outflows, breaking a five-day inflow streak that had added $1.5 billion. Cumulative inflows remain positive at $13.34 billion, almost entirely concentrated in BlackRock’s ETHA, which accounts for $13.1 billion. Analysts note Ethereum historically struggles in September, citing $46.5 million in ETF outflows during the same month in 2024.Bitcoin, by contrast, gained $1.26 billion that September, benefiting from risk-off positioning.Whales Scoop Up $620M in Ether as Institutions Boost ExposureDespite the latest ETF withdrawals, whale and institutional activity suggest a sustained appetite for Ether.Last week, nine large addresses purchased $456.8 million worth of ETH, with five wallets receiving transfers from custodian BitGo and others acquiring coins through Galaxy Digital.Lookonchain that newly created wallets accumulated another 35,948 ETH, worth $164 million, within eight hours, with tokens sourced from FalconX and Galaxy Digital.Whales keep accumulating .2 newly created wallets withdrew 34,000 ($151M) from and deposited it into . — Lookonchain (@lookonchain) Institutions are also active. 14,665 ETH worth $65.3 million from Galaxy Digital, while three wallets received 65,662 ETH, valued at $293 million, from FalconX.💰 Largest Ethereum corporate holder, Bitmine purchased 80,325 ETH from Galaxy Digital and FalconX, valued at $358 million. — Cryptonews.com (@cryptonews) Meanwhile, , worth $148.6 million, into Coinbase Prime. The activity follows reports that the firm sold $151.4 million in ETH while doubling its Bitcoin purchases, illustrating shifting allocations between the two assets.Ethereum’s relative strength adds context. Over the past month, Ether has gained 18.5%, while Bitcoin has slipped 6.4%. ETH now trades 6.7% below its record high, while Bitcoin remains more than 10% off its $124,500 all-time high earlier this yearAnalysts pointed out that some long-term Bitcoin holders are taking profits. A whale who bought BTC in 2013 at $332 recently moved 750 coins, worth $83.3 million, to Binance. On-chain watchers suggested the funds could rotate into Ethereum, echoing earlier transactions where whales sold Bitcoin to buy Ether.One such trade this month saw 670 BTC, worth $76 million, converted into 68,130 ETH valued at $295 million. Another long-dormant address withdrew 6,334 ETH, worth $28 million, from Kraken after years of inactivity. Bitcoin Consolidates as Binance Futures Volume Hits $2.6 TrillionBitcoin (BTC) is trading at $110,778, down 0.7% in the past 24 hours and 1.9% over the week. The asset remains 10.5% below its $124,500 all-time high.Notably, over the weekend, BTC dropped to $107,400, its lowest level in seven weeks, before rebounding to $112,000. the correction cooled the “euphoric phase” that began in mid-August, when 100% of Bitcoin’s supply was in profit.Source: Sustaining such conditions typically requires strong inflows, which faded by late August. Currently, 90% of , within the $104,100–$114,300 cost basis range.Glassnode noted that a break below $104,100 could trigger another post-ATH drawdown, while a recovery above $114,300 would indicate renewed demand.Short-term holders saw profits collapse from above 90% to just 42% during the decline. While the rebound restored profitability to over 60% of their supply, analysts warned that the recovery is fragile.Source: GlassnodeGlassnode said only a move above $114,000–$116,000, where 75% of short-term holders would be in profit, could restore confidence for a fresh rally.Resistance remains heavy in the $111,700–$115,500 zone, which aligns with the 50-day and 100-day simple moving averages. “BTC has been consolidating below its previous local range and has failed to retake it,” trader , adding that the $107,000 monthly low may not hold if selling pressure intensifies.Source: Source: Meanwhile, Binance futures trading surged to a record $2.62 trillion in August, up from $2.55 trillion in July, . The spike reflects heightened volatility, increased hedge fund and institutional participation, and rising open interest.Analysts cautioned that while strong derivatives activity indicates liquidity, futures-driven momentum without stable spot inflows often precedes sharp corrections.For now, Bitcoin remains range-bound, with bulls needing to reclaim $114,000 to confirm a stronger recovery.