The final stretch of August brought a sharp divergence between Spot Bitcoin and the Ethereum ETF. Bitcoin ETF recorded six consecutive days of leaks, releasing nearly $2 billion from August 19th to August 22nd alone.
In contrast, Ethereum ETF posted a two-day influx after enduring several red sessions. This indicates a surge in investor interest during ETH’s latest price rise.
Between August 19th and August 22nd, the Spot Bitcoin ETF saw heavy and relentless red. The biggest wave took place on August 19th, adding up a $523 million outflow led by Fidelity’s FBTC (-$246.9 million) and BlackRock’s IBIT (-$220 million). The pressure was extended until August 20th, bringing in another $315.9 million, followed by $194.4 million on August 21 and $23.2 million on August 22.
This six-day streak has been one of the longest outflows this summer, with cumulative redemptions exceeding $1.3 billion within a week. The flow was consistent with the cooling in Bitcoin’s spot market. BTC slid from $114,300 on August 20th to $111,600 between August 25th.
ETF data shows that demand for the agency has declined almost exactly when BTC struggled to retain its $117,000 support for technical resistance and $113,000.
The Ethereum ETF saw a different trajectory over the past week. After a few days of outflows that won a $240 million spill on August 20, the funds reversed positively.
On August 21, the ETH ETF raised $287.6 million, followed by an additional $337.7 million on August 22. Fidelity’s Feth and BlackRock’s Etha were the main drivers.
Like Bitcoin, this capital turnover reflects the price performance of ETH. After soaking in $4,225 on August 21, Ethereum had peaked at over $4,800 by August 22nd, reaching its peak at near $4,883. Bitcoin was shaking, but ETH pulled out an influx as traders centered on stronger, short-term momentum.
Splitting a flow refers to a change in allocation settings. The six-day outflow streak of Bitcoin tells us that the institution is trimming the exposure after a massive months of influx early in the summer. At the same time, the sudden influx of ETH suggests that investors may be reassigning their cryptos within their asset classes rather than not finishing them entirely.
Timing here is important. ETH rebounds caused an influx, indicating that demand for ETFs is a price temptation, while Bitcoin ETF redemptions increased downside pressure.
If divergence continues, it may mark a turnover period in which ETH will benefit from Bitcoin costs. However, to offset the advantage of Bitcoin’s size, a sustained inflow into ETH ETFs is required, and BTC ETFs still hold much larger cumulative assets.
