Crypto Funds Keep Bleeding: $73M Pulled from Bitcoin and Ethereum ETFs

Spot Ethereum vs Bitcoin ETFs: Which Crypto Fund Is Leading August Flows?

The cryptocurrency market faced fresh turbulence in mid-August as Spot Ethereum and Bitcoin exchange-traded funds (ETFs) suffered a combined $73 million in outflows on August 15. The sudden reversal came on the heels of hotter-than-expected U.S. Producer Price Index (PPI) data, raising new concerns over the Federal Reserve’s policy path and triggering renewed volatility across digital assets.

While both Bitcoin and Ethereum ETFs absorbed the shock, investors are increasingly asking a critical question: which of these two leading crypto investment products is attracting greater institutional support, and which is losing its momentum?

Spot Bitcoin ETFs See First Outflow in Nearly Two Weeks

On August 15, Spot Bitcoin ETFs posted net outflows of $14.13 million, their first daily setback since August 6. Despite the dip, cumulative inflows for the products remain strong, totaling $54.97 billion, with $3.28 billion traded in overall value.

Source: SoSoValue

Looking at the weekly picture, the numbers tell a more optimistic story. Spot Bitcoin ETFs brought in $547.82 million in inflows over the last seven days, signaling that investor appetite remains intact despite day-to-day volatility. Among the 12 ETF providers, iShares Bitcoin Trust (IBIT) emerged as the top performer, recording $114.40 million in new inflows.

By contrast, Grayscale Bitcoin Trust (GBTC) led the day’s redemptions, with $81.82 million flowing out. The contrasting fortunes of IBIT and GBTC reflect the broader shift in investor sentiment, as newer, lower-fee ETFs continue to capture market share from legacy products.

The trigger for the sudden reversal was Bitcoin’s price performance. After gaining 1% earlier in the week, BTC tumbled 1.28% in a single trading session. Analysts attribute the selloff to the hotter U.S. PPI report, which showed a year-over-year increase of 3.3%, reducing hopes of a near-term Fed rate cut. The data fueled fears that monetary policy could remain tighter for longer, dampening risk sentiment across crypto markets.

Adding to the pressure were large-scale whale sell-offs, which accelerated the downturn and sparked renewed fears of a crypto crash among retail and institutional investors alike.

Ethereum ETFs Absorb Heavier Losses Despite Record Weekly Gains

If Bitcoin’s outflows rattled the market, Ethereum’s ETF flows proved even more dramatic. Spot Ethereum ETFs saw $59.34 million in outflows on August 15, despite posting record inflows of $1 billion just a week earlier on August 8. The losses marked the first daily outflow for ETH ETFs since August 5.

Cumulatively, Ethereum ETFs still boast $12.67 billion in inflows and $3.54 billion traded in total value, underscoring the scale of institutional participation. Yet, the daily setback highlights just how sensitive the market remains to macroeconomic data and sudden price swings.

Among providers, iShares Ethereum Trust (ETHA) was the standout, posting $338.09 million in inflows on the day. On the other hand, Fidelity Ethereum Fund (FETH) recorded the steepest outflows at $272.23 million, offsetting ETHA’s gains.

The selloff coincided with a sharp decline in Ethereum’s price, which fell 4.11% in 24 hours to $4,453.86. The plunge was compounded by more than $1.1 billion in crypto liquidations across the market, with leveraged long positions suffering the heaviest losses. Once again, the catalyst was the U.S. PPI data, which rattled markets and shifted investor expectations for Fed easing.

Still, the weekly picture paints a more optimistic scenario. Ethereum ETFs logged record inflows of $2.85 billion over the week, suggesting that investor appetite for ETH remains resilient despite short-term volatility.

Ethereum vs Bitcoin ETFs: The Monthly Battle for Dominance

The rivalry between Bitcoin and Ethereum ETFs is intensifying as institutional investors decide where to place their bets. When looking at July and August flows, a clear pattern emerges.

Ethereum ETFs attracted $5.43 billion in inflows in July and have added $3.03 billion so far in August. In comparison, Bitcoin ETFs secured $6.02 billion in July but have seen net outflows of $17.67 million in August, signaling a potential shift in investor preferences.

Source: SoSoValue

The numbers suggest that while Bitcoin ETFs remain the largest by total assets, Ethereum ETFs are increasingly winning the monthly race for inflows. Analysts point to several key reasons for this trend. First, Ethereum recently celebrated its 10-year anniversary, a milestone that highlighted its staying power as a blockchain ecosystem. Second, large institutional purchases and custody arrangements have reinforced Ethereum’s credibility as a core digital asset. And third, the network’s upcoming upgrades, which promise greater scalability and lower fees, are boosting investor confidence.

Some market watchers argue that Ethereum ETFs may be better positioned than Bitcoin ETFs in August, thanks to this combination of institutional momentum and strong network fundamentals.

Broader Market Implications: Sensitivity to Macroeconomic Triggers

The volatility seen in mid-August underscores a broader truth about crypto ETFs: they remain highly sensitive to macroeconomic data and broader market conditions. The U.S. PPI report served as a stark reminder that even the most popular crypto investment products are not immune to traditional financial pressures.

Both Bitcoin and Ethereum ETFs saw single-day outflows in response to the data, reflecting investors’ cautious approach as inflation concerns weigh on the outlook for risk assets. While the longer-term trajectory for both products remains positive, the near-term turbulence highlights the challenges facing crypto as it seeks mainstream adoption.

At the same time, the divergent monthly flows highlight the importance of product differentiation. Ethereum’s stronger inflows suggest that investors are increasingly willing to diversify beyond Bitcoin, especially as Ethereum continues to expand its role in decentralized finance (DeFi), tokenization, and Web3 applications.

Expert Perspectives: Bitcoin’s Stability vs Ethereum’s Growth Story

Market experts are divided on which ETF is likely to dominate going forward. Some argue that Bitcoin remains the “safe haven” within crypto, with its established reputation as digital gold and its $1 trillion market capitalization. Others contend that Ethereum’s growth story, tied to real-world applications and network upgrades, offers greater upside potential.

“Bitcoin ETFs provide stability and liquidity, but Ethereum ETFs may capture more of the growth narrative,” one analyst noted. “Institutional investors are paying attention to where the innovation is happening, and much of that is currently on Ethereum.”

Conclusion: Ethereum Leads August, but the Race Remains Open

The battle between Spot Bitcoin and Ethereum ETFs is far from settled. While both products remain highly popular among institutional investors, Ethereum has taken the lead in August inflows, while Bitcoin has stumbled.

Yet, the broader context matters. Both ETFs remain sensitive to macroeconomic shifts, with inflation data and Fed policy decisions exerting outsized influence on short-term flows. Over the longer horizon, the question of whether Ethereum can consistently outpace Bitcoin remains open, especially as both networks evolve and adapt to changing market conditions.

For now, investors appear to be leaning toward Ethereum ETFs, drawn by its growth narrative, institutional backing, and upcoming technological upgrades. Whether this shift proves to be temporary or a sign of a longer-term trend will likely define the next chapter in the battle for crypto ETF dominance.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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