Bitcoin ETFs see $440M inflow rebound, breaks weeklong outflow streak

Bitcoin ETF inflow roared back in the final week of August, with $440 million pouring into spot funds and reversing the prior week’s slump. The rebound lifted total net intake to $54.24 billion, pushing net assets near $140 billion and cementing Bitcoin’s dominance in exchange-traded products.

By contrast, Ethereum ETFs attracted just $1.08 billion in the same period, a sharp slowdown from the $2.85 billion they absorbed on August 22. The shift suggests that Ethereum’s recent momentum may have been short-lived, with investors once again consolidating around Bitcoin.

“Bitcoin ETF inflow remains the key indicator of institutional preference,” — Michael van de Poppe, CEO, MN Trading. “Short-term rotations happen, but Bitcoin continues to anchor most portfolios.”

Altseason hype cools down

Earlier in August, Ethereum’s rapid fund inflows had fueled speculation of an approaching “alt season,” a period where alternative cryptocurrencies outperform Bitcoin. However, the latest Bitcoin ETF inflow data indicates that larger investors still see Bitcoin as the safer long-term asset.

Bitcoin’s market dominance, which stood above 66% earlier in the summer, has eased to around 58%. While this decline opened space for altcoins to rally, ETF patterns suggest that institutional capital gravitates back to Bitcoin when market uncertainty grows.

“The Ethereum spike looked like a one-off event rather than a sustained shift,” — James Butterfill, Head of Research, CoinShares. “Bitcoin ETF inflow proves that investors continue to treat BTC as the benchmark.”

Institutional strategy favors Bitcoin core

Analysts note that Ethereum is increasingly being used as a “satellite allocation” rather than a portfolio anchor. For institutional investors, this means Bitcoin remains the primary holding, while smaller positions in Ethereum and other altcoins serve as diversification tools.

The back-and-forth between Bitcoin and Ethereum highlights the week-to-week volatility in ETF flows. Still, the $440 million Bitcoin ETF inflow demonstrates that despite competition, Bitcoin’s role as the foundation of institutional crypto investment is secure.

“Substantial Bitcoin ETF inflow reinforces confidence in its status as digital gold,” — Clara Medalie, Research Director, Kaiko. “Ethereum and altcoins are gaining recognition, but they are not displacing Bitcoin at the core of investment strategies.”

Outlook for September

With September underway, analysts expect Bitcoin to maintain its advantage as long as ETF inflows continue. Ethereum may see renewed bursts of activity, but the broader pattern underscores Bitcoin’s resilience in institutional markets.

The August reversal underscores a broader lesson for investors: ETF data provides an immediate, measurable snapshot of sentiment. And for now, the numbers show Bitcoin’s dominance is far from over.