Bitcoin Regains Institutional Momentum as BlackRock Shifts Away From Ethereum

Fresh data shows BlackRock sold roughly $151 million worth of ETH on September 3 while simultaneously adding nearly $290 million in Bitcoin. The move highlights a wider trend among asset managers, who are now positioning portfolios around BTC as the safer macro hedge.

Ethereum’s Hot Streak Meets Resistance

Last month, Ethereum ETFs captured close to $3.9 billion in net inflows, outpacing Bitcoin funds for the first time since their debut. That surge was fueled by optimism around staking, supply tightening, and treasury allocations by corporations. ETH closed August with strength, cementing its role as the standout performer among top altcoins.

But the latest flows suggest that confidence may have hit a ceiling. Analysts point to growing caution around inflation data, looming Federal Reserve decisions, and lingering volatility in the broader market.

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Bitcoin’s Hedge Appeal Returns

Bitcoin ETFs, after bleeding $751 million in August, quickly reversed course. On September 2 alone, they absorbed $332.7 million in fresh inflows, with Fidelity leading at $132.7 million and BlackRock adding $72.8 million. This renewed appetite reflects traders’ focus on BTC’s long-standing role as a defensive asset when economic uncertainty looms.

Polymarket odds now place the chance of a Fed rate cut in September at nearly 87%, a policy shift that could unlock more liquidity for Bitcoin as institutional allocators rebalance.

Where Things Stand

BlackRock’s current books show $84 billion locked into Bitcoin exposure, representing almost 3.8% of BTC’s supply, compared with $13 billion in Ethereum holdings, or 3.1% of ETH’s market.

The contrast underlines how fast sentiment can swing in institutional circles: Ethereum’s ETF debut may have dazzled in August, but Bitcoin’s reputation as digital gold still gives it the upper hand when the macro backdrop turns uncertain.

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