Highlights: Bitcoin ETFs drew significant investment and outperformed Ethereum ETFs in recent market activity. Ethereum faced outflows as investors shifted preference toward Bitcoin amid cautious sentiment. Corporate Ethereum holdings grew substantially and hit new highs by the end of August. Spot Bitcoin exchange-traded funds (ETFs) outperformed Ethereum ETFs in investment activity on Tuesday. According to SoSoValue data, Bitcoin ETFs saw net inflows of $332.7 million, while Ethereum ETFs experienced net outflows totaling $135.3 million. Fidelity Wise Origin Bitcoin Fund (FBTC) led the inflows with $132.7 million, followed by BlackRock’s iShares Bitcoin Trust (IBIT) at $72.8 million. Significant contributions also came from other major issuers, including Ark 21Shares, Bitwise, Grayscale, VanEck, and Invesco. Ether ETFs Face $164M Outflows Ether ETFs experienced significant outflows. Fidelity Ethereum Fund (FETH) led the decline, losing $99.2 million, while Bitwise Ethereum ETF (ETHW) fell by $24.2 million. Overall, Ether ETFs recorded $164 million in outflows on Friday. The sharp turnaround in ETF flows highlights how rapidly institutional sentiment can pivot between Bitcoin and Ethereum. On September 2, spot Bitcoin ETFs saw $333M in net inflows, led by Fidelity’s FBTC with $133M. Spot Ethereum ETFs posted a total net outflow of $135M, with none of the nine ETFs recording a net inflow. Ethereum spot ETF with the largest single-day net outflow was Fidelity’s FETH,… pic.twitter.com/Lgb3LIuYmg — Wu Blockchain (@WuBlockchain) September 3, 2025 Ethereum Soars in August Before September Faces ETF Outflows Ethereum’s upward trend carried through August, reaching a record high of $4,953.73. Corporate Ethereum positions expanded significantly, with 71 companies disclosing combined holdings of $119.68 billion by the end of August, up from 67 firms reporting $98.97 billion the prior month. Last month, Ethereum ETFs saw substantial net inflows of $3.87 billion, while Bitcoin experienced outflows totaling $751 million. Trading volumes highlighted this contrast: Ethereum ETF activity jumped to $58.37 billion in August, almost twice July’s $33.87 billion, whereas Bitcoin ETF volume slightly decreased to $78.14 billion. However, a single trading session in September reversed the trend entirely. $ETH has the the 5th largest ETF in the US by inflows. $3.85B flowed into $ETHA in August alone. It's a new fund, just 14 months old, achieving inflows that typically take decades for most ETFs. Wall Street is coming for your Ethereum. pic.twitter.com/NsHWpX2ofF — Milk Road (@MilkRoadDaily) August 31, 2025 September Trends Favor Bitcoin Over Ethereum Analysts indicate that September could once again benefit Bitcoin. Historically, this month tends to be slower for crypto. Ethereum often lags due to weaker seasonal flows and lower risk-taking. Bitcoin, regarded as a safer benchmark, usually attracts inflows when market volatility increases. Broader economic factors are influencing this trend as well. Global central banks have signaled caution, and steady bond yields are prompting investors to cut higher-risk Ethereum holdings. This is shifting preference toward Bitcoin, which continues to be seen as the preferred digital reserve asset. Analysts view Bitcoin’s growing coverage to be related to its “digital gold” status. With ongoing economic instability around the world, funds are flocking to assets perceived to be safe. Institutional demand for Bitcoin is rising once again, in the view of the chief investment officer at Kronos Research, Vincent Liu, with its potential to be a digital substitute for gold gaining further traction. The recent record-breaking surge in gold prices further emphasizes the increasing demand for hard assets. This trend positions Bitcoin as a compelling choice for portfolio diversification. Liu says Bitcoin may stay preferred while market volatility is high. Its stability attracts investors, unlike Ethereum, which faces profit-taking after August gains. Overall, the crypto market is recovering, with digital asset funds adding $2.5 billion last week, contributing to over $4.3 billion in inflows for August. eToro Platform Best Crypto Exchange Over 90 top cryptos to trade Regulated by top-tier entities User-friendly trading app 30+ million users 9.9 Visit eToro eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.
