Bitcoin ETF Inflows Surge $246M as BTC-USD Trades Near $112K, Ethereum Faces $788M Outflows

Bitcoin ETF Inflows Strengthen Market Position as Ethereum Sees Outflows

BTC-USD ETF Inflows Signal Renewed Institutional Demand

Bitcoin (BTC-USD) is trading near $112,200 after another week of strong institutional inflows into U.S.-listed ETFs. Between September 1 and September 5, Bitcoin ETFs absorbed $246.42 million in net inflows, led by BlackRock’s iShares Bitcoin Trust (IBIT), which alone attracted $434.32 million. Fidelity’s FBTC added $25.01 million, while Invesco’s BTCO posted $2.21 million. Grayscale’s GBTC, once the flagship, saw outflows of nearly $70 million, continuing its gradual decline as cheaper ETF products dominate. Despite short-term volatility, Bitcoin ETFs remain the strongest magnet for institutional capital, contrasting sharply with Ethereum ETFs, which lost $788 million over the same week.

Strategy Expands Holdings and Alters Supply Dynamics

MicroStrategy-inspired firm Strategy made headlines with a purchase of 1,955 BTC worth $217.4 million, representing 62% of all newly mined Bitcoin in that week. Alongside Metaplanet’s smaller addition, the combined total reached 2,091 BTC, about two-thirds of the weekly mined supply. Strategy’s Bitcoin treasury now stands at 638,460 BTC, worth over $71.6 billion at current prices, with an average cost basis near $73,900. The firm’s estimated profit sits at 51.8%, showing how corporate treasuries have been reshaping Bitcoin supply by soaking up new issuance faster than miners can release it.

Whale Activity Contrasts ETF Strength

On-chain data reveals that whales—large holders of more than 1,000 BTC—have been unloading coins at the fastest pace since 2022. Over the past month, more than 100,000 BTC have exited whale wallets, driving short-term price pressure and briefly pushing BTC under $108,000 last week. The divergence between whale selling and ETF inflows highlights a structural shift: institutional demand through regulated ETFs is absorbing supply even as older market players de-risk. This suggests that ETF flows may increasingly set the tone for Bitcoin price action, especially if whales continue reducing direct holdings.

Ethereum Outflows Underscore Diverging Sentiment

Ethereum-based ETFs shed $787.74 million in the first week of September, led by BlackRock’s ETHA with $312 million in redemptions and Fidelity’s FETH with $288 million. Even Grayscale’s ETHE lost more than $80 million. Analysts attribute the move to two main factors: ETH spot ETFs cannot stake tokens, making them less attractive during risk-off periods, and macro anxiety has driven institutions toward Bitcoin, which is increasingly viewed as the safer digital asset. Ether’s price has hovered around $4,300, down 3.3% over the week, underperforming Bitcoin’s modest 2.1% gain.

Macro Drivers and Fed Policy Outlook

ETF flows are also being shaped by macro conditions. U.S. jobs data pointed to a weakening labor market, fueling expectations for three Fed rate cuts in 2025, more than the two officially projected. Fundstrat’s Tom Lee has gone as far as projecting Bitcoin could hit $200,000 before year-end if monetary policy eases aggressively. Historically, Bitcoin rallies have coincided with Fed easing cycles, with Q4 2024 serving as a prime example. With CPI and PPI prints due in the coming week, ETF inflows could accelerate further if inflation cools and rate cuts are confirmed.

Technical Outlook for BTC-USD Amid ETF Dynamics

From a chart perspective, $112,916 is acting as the immediate resistance zone for BTC-USD. RSI is hovering near the neutral 50 level on the four-hour chart, and a bounce above that could trigger a push to $115,000 and $117,000. A breakdown, however, would expose recent lows near $109,500 and $108,000, where ETF inflows would again be tested as a stabilizing factor. ETF demand in the last two weeks has repeatedly coincided with support levels holding, suggesting that institutional inflows are anchoring Bitcoin’s short-term floor.

Overall Market Impact of Bitcoin ETF Inflows

The return of Bitcoin ETF inflows—over $600 million in just two sessions earlier this month—contrasts sharply with Ethereum’s institutional struggles and highlights Bitcoin’s evolving role as the digital safe haven. ETF dominance is growing: IBIT and FBTC now represent the bulk of daily inflow activity, positioning Bitcoin ETFs as the core liquidity driver in crypto markets. With whales selling, corporations buying, and ETFs absorbing billions, BTC-USD is increasingly trading less like a speculative token and more like a macro asset responding to institutional capital flows.

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