Institutional capital is once again tipping the scales in Bitcoin’s favor. On Tuesday, U.S. spot Bitcoin ETFs recorded over $330 million in net inflows, extending a steady trend of renewed demand for the asset seen increasingly as a safe-haven alternative. Fidelity’s FBTC led with $132 million, followed by BlackRock’s IBIT, underscoring the continued dominance of the largest issuers in attracting market liquidity.
Ethereum funds, meanwhile, saw a sharp reversal. More than $135 million in net outflows were reported, led by Fidelity’s $ETH ETF with nearly $100 million withdrawn in a single day. The selling pressure adds to Friday’s $164 million bleed, signaling that investors may be cashing in on gains after Ethereum’s strong August inflows, which totaled close to $4 billion.
The shift highlights a growing divergence in investor appetite. With gold at fresh record highs, Bitcoin’s “digital gold” narrative has regained momentum, positioning it as a hedge in times of macroeconomic uncertainty. Ethereum, despite its strong fundamentals and recent network progress, appears to be entering a phase of profit-taking and cautious positioning.
Market analysts suggest this trend may persist if volatility in equities and forex continues to rise. “Bitcoin’s liquidity profile and perception as a hard asset are attracting institutions looking for stability,” said one strategist. “Ethereum isn’t out of favor, but it is being treated as a higher-beta play, investors rotate out of it when risk aversion picks up.”
Looking ahead, $BTC may continue to draw flows as long as risk-off sentiment dominates, while Ethereum could see renewed inflows once confidence builds around its long-term utility and staking-driven yield. For now, however, the market is making its preference clear: capital seeks safety, and Bitcoin is the asset of choice.
