Ethereum just posted one of its biggest ETF inflow wins ever. On August 25, spot ETH ETFs recorded $444 million in net inflows, marking three straight days of positive demand. For comparison, Bitcoin ETFs only saw $219 million in inflows, with not a single outflow across all twelve BTC products.
That’s a huge gap. On paper, ETH is heavily outperforming Bitcoin in terms of institutional demand. But here’s the twist: despite these numbers, Ethereum’s price actually dipped more than 9% yesterday, showing that ETF flows don’t always move in lockstep with market price.
On August 25, Ethereum spot ETFs recorded $444 million in total net inflows, marking three consecutive days of inflows. Bitcoin spot ETFs saw $219 million in total net inflows, with none of the twelve ETFs reporting outflows.
— Wu Blockchain (@WuBlockchain) August 26, 2025
https://t.co/Tvs2oCSxTg
Why ETH ETFs Are Outperforming
So what’s driving Ethereum’s advantage right now? Two main things: futures open interest and L2 progress. ETH futures open interest is at an all-time high, signaling traders are piling in with leverage. At the same time, Layer 2 ecosystems are booming – scaling tech like Arbitrum, Base, and zk-rollups are pulling more liquidity into the ETH network.
There’s also a strong social momentum around ETH. Narratives tying Ethereum to AI, data storage, and tokenized assets are giving it extra buzz. That mix of fundamentals and hype is why inflows keep coming.
Bitcoin isn’t doing badly either. Those $219 million in inflows are steady, and the fact that none of the twelve ETFs saw outflows is a good sign of consistent demand. BTC is still benefiting from yield protocols, EVM-compatible L2s, and its safe-haven reputation.
But there’s a catch. Open interest data shows that BTC traders are more cautious. Some are already rotating profits into Ethereum or altcoins, betting that BTC may be further along in its cycle than ETH.
The Disconnect Between Price and Flows
The big lesson here is that ETF flows don’t guarantee price rallies. Ethereum’s 9% drop yesterday is proof. Even when institutional money pours in, other forces – like whale sell-offs, market rotations, or macro news – can offset the inflows.
That’s why traders need to be careful about treating ETF numbers as a one-way bet. They’re an important piece of the puzzle, but not the whole picture.
The rotation signal is real, but the next few weeks will show whether it sticks.
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