Bitcoin ETF Outflows Fuel Ethereum Surge: Institutional Shift?
Bitcoin to Ethereum: A Rotation in ETF Flows?
A notable shift occurred in August as Bitcoin spot ETFs experienced $751 million in net outflows, a stark contrast to the asset's earlier rally. Meanwhile, Ethereum ETFs absorbed $3.9 billion, according to market data.
This divergence marks the first instance of BTC ETFs losing ground while Ethereum ETFs showed strong inflows within the same month. The trend suggests a potential rebalancing of exposure by institutional investors.
Bitcoin's Fragility Under Scrutiny
On-chain data indicates potential weakness for Bitcoin. A report highlights that BTC has fallen below the cost basis of short-term holders (1- and 3-month), potentially leading to deeper retracements. A move below the six-month cost basis near $107,000 could trigger further losses towards the $93,000–$95,000 support zone.
Prediction markets reflect this caution, with traders assigning a 65% chance of BTC revisiting $100,000 before reaching $130,000.
Ethereum's Steady Inflows
Ethereum, in contrast, has seen consistent inflows. ETH ETFs have recorded positive net subscriptions in 10 of the past 12 months. August's $3.9 billion influx contributed to a 25% gain over 30 days for the token, despite recent market volatility.
Market Movements:
- BTC: Trading below 108k; a rebound may occur after the Fed's September 17 decision, observers say charts look bearish but may be bullish.
- ETH: Prediction markets favor Ethereum holding above $3,800 into September 5 and finishing 2025 above $5,000.
- Gold: Climbing towards record highs as traders anticipate Fed rate cuts and political uncertainty.
- Nikkei 225: Expected to open lower amid global economic factors and policy decisions.
Elsewhere in Crypto:
- Justin Sun aims to build a 'Swift' system for virtual assets, praising Hong Kong's crypto progress.
- Blockstreet predicts Trump-backed USD1 will surpass Tether and USDC as the top stablecoin by 2028.
- WLFI derivatives volume surges 400% before World Liberty's first token unlock.