August ETF Flows Show the Massive Scale of Bitcoin to Ethereum Rotation

Good Morning, Asia. Here’s what’s making information in the markets:

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August delivered a uncommon reversal in the ETF tide: Bitcoin spot funds shed $751 million in internet outflows simply weeks after powering the asset to a $124,000 all-time excessive, whereas Ethereum ETFs quietly absorbed $3.9 billion, in accordance to market knowledge.

The divergence is putting as a result of it marks the first time since each merchandise launched that BTC ETFs have misplaced floor, whereas Ethereum ETFs have posted sturdy inflows in the similar month, suggesting that institutional traders could also be rebalancing their publicity.

On-chain knowledge underscores Bitcoin’s fragility. A current report from Glassnode reveals BTC slipping beneath the price foundation of 1- and 3-month holders, leaving short-term traders underneath water and elevating the danger of deeper retracement. A sustained transfer beneath the six-month price foundation close to $107,000 may speed up losses towards the $93,000–$95,000 help zone, the place a dense cluster of long-term holders final accrued.

Prediction markets are echoing that warning. Polymarket merchants now assign a 65% likelihood that BTC revisits $100,000 earlier than $130,000, whereas solely 24% count on it to hit $150,000 by year-end. That shift suggests traders see the July rally as overextended with out renewed ETF demand to again it.

Ethereum, in the meantime, has benefited from steadier inflows. ETH ETFs have logged optimistic internet subscriptions in 10 of the final 12 months, and August’s $3.9 billion haul helped the token notch a 25% achieve over 30 days regardless of a tough week.

With Bitcoin’s ETF tide flowing out, Ethereum’s steadier institutional bid could also be rising as a quiet ballast and maybe the begin of a rotation story heading into year-end.

Market Movements:

BTC: Market observers say crypto charts look so bearish they could possibly be bullish, in accordance to prior CoinDesk reporting, as BTC trades beneath 108k, with pressured liquidations clearing leverage and a rebound doubtless after the Fed’s Sept. 17 choice.

ETH: Polymarket merchants see Ethereum holding above $3,800 into September 5 with over 90% odds, whereas longer-term bets give it a 71% likelihood of ending 2025 above $5,000 and slimmer odds of $10,000 or increased.

Gold: Gold climbed towards file highs as merchants priced in Fed fee cuts, a weaker greenback, and political uncertainty following challenges to the central financial institution’s independence.

Nikkei 225: The Nikkei 225 regarded set to open decrease as traders weighed a U.S. courtroom ruling towards Trump’s tariffs, China-India ties, and upcoming manufacturing knowledge.

Elsewhere in Crypto:

• Justin Sun eyes ‘Swift’ for digital asset sector, praises Hong Kong crypto strikes (SCMP)
• Trump-Backed USD1 to Supplant Tether, USDC as Top Stablecoin by 2028: Blockstreet (Decrypt)
• WLFI derivatives quantity jumps 400% forward of World Liberty’s first token unlock on Monday (The Block)