Bitcoin ETFs Attract Strong Inflows While Ethereum Funds Struggle

Spot Bitcoin exchange-traded funds (ETFs) saw net inflows of $332.7 million on Tuesday, reversing recent trends and outpacing Ethereum ETFs, which recorded $135.3 million in net outflows, according to SoSoValue data. The latest movement underscores shifting investor sentiment between the two largest cryptocurrencies. Bitcoin Gains Institutional Support Fidelity’s FBTC led the inflows, securing $132.7 million. BlackRock’s IBIT followed with $72.8 million, while other firms, including Grayscale, Ark 21Shares, Bitwise, VanEck, and Invesco, also registered inflows. The rebound comes at a time when Bitcoin’s reputation as “digital gold” is gaining renewed traction among institutional investors. “Bitcoin is once again attracting institutional flows as its digital gold narrative regains traction,” said Vincent Liu, chief investment officer at Kronos Research. Ethereum Takes a Hit By contrast, Ether ETFs faced significant withdrawals. Fidelity’s FETH lost $99.2 million, while Bitwise’s ETHW shed $24.2 million. This marked a sharp reversal from August, when Ethereum funds attracted $3.87 billion, compared to $751 million in outflows from Bitcoin ETFs. Ether products also recorded $164 million in outflows on Friday, further adding to recent losses. Market Sentiment Shifts Analysts say the divergence reflects broader macroeconomic uncertainty. “With gold at all-time highs, appetite for hard assets is clearly strengthening,” Liu explained. “In this environment of macro uncertainty, BTC is standing out against ETH, which appears to be entering a period of profit-taking,” he said. Liu suggested that if volatility persists across global markets, Bitcoin could continue to outperform Ethereum thanks to its perceived safe-haven qualities. Crypto Funds Recover The shift in flows comes as crypto investment products overall rebounded strongly. Last week, funds posted $2.48 billion in net inflows, recovering from $1.4 billion in outflows the previous week. August ended with $4.37 billion in inflows, lifting year-to-date figures to $35.5 billion, a 58% increase compared to 2024. Despite the rebound, assets under management dropped 7% week-over-week to $219 billion, showing that volatility remains a key factor in the sector.