Spot Bitcoin exchange-traded funds (ETFs) broke a nine-day streak of gains on Friday, recording capital outflows just as their Ethereum counterparts continued to attract fresh capital.
US spot Bitcoin ETFs recorded net outflows of US$201.9 million on 28 August, according to data from SoSoValue, ending a run of consecutive inflows that had lasted since mid-August. The reversal cut cumulative net inflows to roughly US$55.1 billion, with the funds now holding approximately US$93.9 billion in total net assets. Decrypt's ETF flow tracker shifted its sentiment reading for Bitcoin to "bearish" on that day.
An ETF, or exchange-traded fund, is an investment vehicle that holds an underlying asset and trades on a traditional stock exchange, allowing investors to buy and sell shares through an ordinary brokerage account. A spot Bitcoin ETF holds actual Bitcoin, and each share represents a claim on a portion of that holding. This structure gives investors indirect exposure to the price of Bitcoin without the friction of buying the asset directly.
That convenience is a large part of why the funds attract traditional and institutional investors, and they have had a remarkable trajectory since launch. US spot Bitcoin ETFs debuted in January 2024 after years of regulatory rejections and quickly became among the fastest-growing ETFs in history.
Daily flows now swing between strong accumulation and sharp withdrawals, in step with price fluctuations and the macroeconomic backdrop, which is why market watchers track these flows closely as a gauge of overall sentiment.
Friday's pullback ends an otherwise strong run for the funds. Bitcoin ETFs attracted US$2.8 billion over an eight-day streak as Bitcoin tested US$80,000, and had previously logged their largest daily haul since May. During the streak, daily inflows repeatedly topped US$300 million, peaking above US$600 million on 20 August.
Ethereum ETFs, by contrast, showed no such fatigue. The funds took in US$102.1 million on 28 August, extending a 10-day streak of inflows, according to SoSoValue, and lifting their cumulative net inflows to roughly US$12.9 billion, against US$13.8 billion in total net assets.
Decrypt's tracker kept its Ethereum reading at "bullish". The steady demand marks a notable shift, with Ethereum products in recent sessions nearly matching or rivalling Bitcoin's daily haul despite managing a much smaller asset base.
The diverging flows came as Bitcoin slid after hawkish comments from Federal Reserve Chair Kevin Warsh at Jackson Hole, which cooled a rally that had pushed the token close to US$80,000. Bitcoin subsequently recovered to around US$79,000 over the weekend.
The single-day outflow is modest against the tens of billions the funds have accumulated since launch, and the break in the streak does not necessarily signal a broader reversal in institutional appetite, which has remained robust for both assets.
* Translated and edited with permission from Decrypt.
Invest in Ethereum, the giant cryptocurrency powering the technology of the future. Get started on MB with the security of a leading platform! Your future starts now!
