Spot Bitcoin exchange-traded funds (ETFs) experienced a significant resurgence in inflows this week, contrasting sharply with the recent struggles faced by Ethereum-focused funds. Data reported by SoSoValue indicates that Bitcoin ETFs saw a robust net inflow of $301.3 million on September 3, while Ethereum products faced substantial withdrawals totaling $135.3 million.
Leading the Bitcoin ETF rally was BlackRock’s iShares Bitcoin Trust (IBIT), which garnered an impressive $289.8 million, increasing its total assets under management to $58.6 billion. Another notable player, Grayscale’s Bitcoin Mini Trust, attracted $28.8 million. However, Ark Invest and 21Shares’ ETF faced the largest outflow of the day, losing $27.9 million. Overall, Bitcoin ETFs now command a total of $145.2 billion in assets, representing approximately 6.5% of Bitcoin’s market capitalization, with cumulative inflows amounting to $54.8 billion.
In contrast, Ethereum ETFs experienced a sharp decline in inflows. BlackRock’s ETHA fund led the outflows, losing $151.9 million, while Fidelity’s FETH attracted $65.8 million, and Grayscale’s Mini Trust gained $62.5 million. Bitwise also reported $20.8 million in fresh inflows, but other issuers, including VanEck and Franklin Templeton, remained stagnant. Despite these recent setbacks, Ethereum ETFs still hold a cumulative positive inflow of $13.34 billion, bolstered primarily by BlackRock’s ETHA fund, which represents about $13 billion of that total.
August had painted a different picture, with Ethereum funds dominating the inflow scene, gathering $3.87 billion compared to Bitcoin’s outflows of $751 million. During that time, trading volumes for Ethereum ETFs soared to $58.3 billion, nearly double that of July, while Bitcoin ETF activity slightly decreased to $78.1 billion. Ethereum even recorded a new all-time high of $4,953, aided by corporate treasuries holding $119.6 billion worth of ETH at the month’s end.
However, the tide turned in September; Ethereum ETFs noted $164.6 million in outflows as of August 29, breaking a five-day inflow streak. Analysts highlighted that historical patterns suggest Ethereum typically struggles in September, referencing $46.5 million in outflows from ETFs during the same month in 2024. Meanwhile, Bitcoin experienced a gain of $1.26 billion in September of last year, indicating that investors often shift to risk-averse strategies during this time.
Despite the apparent drop in ETF activity for Ethereum, whale addresses and institutional investors have shown a strong interest in Ether. Last week, nine large addresses purchased $456.8 million worth of ETH, revealing a sustained demand for the asset. Newly created wallets have also accumulated a notable 35,948 ETH, valued at $164 million, with significant purchases sourced from cryptocurrency firms like FalconX and Galaxy Digital.
Institutional players are likewise active. Bitmine received 14,665 ETH worth $65.3 million from Galaxy Digital, while other addresses acquired 65,662 ETH, valued at $293 million, from FalconX. Notably, BlackRock deposited 33,884 ETH, worth $148.6 million, into Coinbase Prime, amid reports that the firm had sold $151.4 million in ETH and shifted its focus towards Bitcoin.
Market performance reflects this shifting dynamic; Ethereum saw a price increase of 18.5% over the past month, while Bitcoin decreased by 6.4%. Presently, Ether trades at 6.7% below its record high, while Bitcoin remains over 10% off its all-time high of $124,500.
Investors are observing long-term Bitcoin holders taking profits; a notable whale who purchased BTC back in 2013 recently transferred 750 coins worth $83.3 million to Binance. On-chain analytics suggest that such movements may indicate a rotation of funds into Ethereum as some whales convert Bitcoin into ETH. One significant trade saw 670 BTC, valued at $76 million, exchanged for 68,130 ETH, valued at $295 million.
Meanwhile, Bitcoin’s price is currently around $110,778, down 0.7% in the past 24 hours and 1.9% for the week. The asset briefly dipped to $107,400, marking its lowest point in seven weeks before recovering to approximately $112,000. Data from Glassnode indicates that the recent correction has dampened the overly optimistic sentiment that began in mid-August; currently, 90% of Bitcoin’s supply remains profitable.
For Bitcoin to gain renewed momentum, it would need to hold above certain price thresholds. A drop below $104,100 could trigger further declines, while a recovery above $114,300 could signal increased demand. Trader Daan Crypto Trades noted that Bitcoin remains under heavy resistance in the $111,700 to $115,500 range.
In the derivatives front, Binance futures trading saw massive activity, listing a record $2.62 trillion in August, up from $2.55 trillion in July. This surge reflects increased volatility and heightened participation from hedge funds and institutions. However, analysts caution that substantial derivatives activity without corresponding stable spot inflows might precede market corrections. For now, Bitcoin’s trading behaviors remain range-bound, with pivotal moments ahead for its recovery trajectory.
