Investors pivot to Bitcoin’s ‘digital gold’ narrative amid market caution
Spot Bitcoin exchange-traded funds (ETFs) recorded $332.7 million in net inflows on Tuesday, significantly outpacing Ethereum products, which saw $135.3 million in net outflows, according to data from SoSoValue.
Fidelity’s FBTC led the pack, bringing in $132.7 million, while BlackRock’s IBIT attracted $72.8 million. Additional inflows were spread across issuers such as Grayscale, Ark 21Shares, Bitwise, VanEck, and Invesco, reinforcing a broader return of institutional demand for Bitcoin-linked products.
By contrast, Ethereum ETFs struggled. Fidelity’s FETH recorded $99.2 million in outflows, while Bitwise’s ETHW lost $24.2 million. The trend follows last Friday’s $164 million bleed from Ether funds, signaling growing caution from investors.
From August strength to September stress
The shift marks a sharp reversal from August, when Ethereum ETFs posted $3.87 billion in inflows, easily surpassing Bitcoin funds, which saw $751 million in outflows. Analysts suggest that after this surge, profit-taking in Ether is weighing on flows, while Bitcoin is benefiting from renewed safe-haven demand.
Bitcoin reclaims the spotlight
“Bitcoin is once again attracting institutional flows as its digital gold narrative regains traction,” said Vincent Liu, chief investment officer at Kronos Research. He pointed to gold’s record-high price above $3,500 as evidence that appetite for hard assets is strengthening, with Bitcoin emerging as a key alternative.
“In this environment of macro uncertainty, BTC is standing out against ETH, which appears to be entering a period of profit-taking,” Liu added.
Broader crypto investment products also rebounded last week, drawing $2.48 billion in inflows after a $1.4 billion outflow the week prior. August closed with $4.37 billion in net inflows, lifting year-to-date inflows to $35.5 billion, up 58% compared with the same point in 2024.
Despite the positive flows, assets under management slipped 7% week-over-week to $219 billion, reflecting price volatility across the sector. Still, the momentum into Bitcoin ETFs underscores investor preference for stability as September trading gets underway.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.