ETH Surpasses BTC as Bitcoin Experiences Major ETF Outflows: Bitfinex Alpha

After a period of significant inflows, U.S. spot Bitcoin and Ethereum exchange-traded funds (ETFs) are now experiencing considerable outflows. Currently, Bitcoin ETFs are leading this trend, and these withdrawals correspond to the price movements of the underlying assets.

According to data analyzed by the crypto exchange Bitfinex disclosed, investors have withdrawn at least $1.18 billion from spot Bitcoin ETFs in the past week. Ethereum ETFs experienced fewer outflows, likely due to ongoing capital shifts towards the altcoin market.

A Week of Steady Outflows

Bitcoin ETFs have seen net outflows exceeding $1.5 billion over six consecutive trading days from August 15 to 22. These negative figures followed a seven-day influx period leading to Bitcoin’s recent all-time high (ATH) of over $124,000. Market analysts suggest that the decline in demand indicates a more cautious investor sentiment during this phase of the bull market.

During the same period, Ethereum ETFs also recorded outflows surpassing $918 million; however, this negative trend did not continue past August 20. Despite the withdrawals, ETH reached an ATH above $4,940 on August 24, although it had retracted at the time of writing. Conversely, Bitcoin has been on a downward trend, dropping over $15,000 from peak to low.

Investors adopted a risk-averse stance ahead of the Jackson Hole symposium, contributing to Bitcoin’s decline as they minimized their risk exposure before the event. Although the market shifted towards a dovish outlook post-meeting, BTC was unable to sustain the bullish momentum, falling below $109,000 on Monday.

Institutional Support for ETH Growth

While BTC faced challenges in maintaining a bullish outlook, ETH saw upward movement driven by ongoing accumulation from Ethereum treasury firms. These entities absorbed a considerable portion of the selling pressure on ETH, mitigating downside risks. Their consistent support has enabled Ethereum ETFs to outperform their Bitcoin counterparts.

Notably, the ETH treasury company Bitmine Immersion Technologies has surpassed MARA Holdings to become the second-largest digital asset treasury, with MARA being a Bitcoin mining company. These developments highlight ether’s emerging role as a liquidity catalyst in institutional markets.

The price movements of BTC and ETH this week depend on inflows from institutional and treasury companies, but Bitfinex advises traders to manage their expectations. This caution is due to the historical tendency of risk asset ETFs to experience reduced positive inflow during the late summer months of August and September.