Funds traded on Spot Ethereum Exchange won around $3.9 billion in August, with US Bitcoin ETFs reaching around $750 million in net redemption.
The split extends the summer stretch, where Ethereum funds have consistently withdrawn capital since late July, as Bitcoin products saw intermittent leaks.
The rotation followed a July record for Ethereum vehicles, with a net inflow of around $5.4 billion, bringing demand for Bitcoin funds and cumulative investors closer to equality for the month.
Momentum accelerated in mid-August, including on August 11th, the Spot ETH ETF’s first day exceeding $1 billion in net creation, according to Vettafi.
The daily flow remains uneven, but according to the issuer-reported tally of Sosovalue, Ethereum was firmly positive in the ledger in August, and Bitcoin was closed on a negative net basis.
Supply absorption is part of the background. The US Spot Bitcoin ETF protects approximately 1.29 million BTC across its issuer, and custody approximately 6-7% of its circular supply.
On the Ethereum side, US spot ETFs hold more than 6.3 million ETH, slightly more than 5% of their circular supply compared to their current issuance of around 120 million ETH. Holdings Share is reflected in community datasets such as Dune’s “Ethereum Spot ETF Overview.”
The growing ETF footprint tightens up your free tradeable float over time. This is the dynamics that affect price discovery if the creation exceeds redemption.
Price action reflects the flow gap in the margin. The ETH/BTC pair was pushed towards the end of August in 2025, expanding Ethereum’s relative outperformance from early summer.
In late August, JP Morgan surrounded a fork around four themes, including stable ETF demand, a pick-up of the direct Corporate Treasury allocation to ETH, a more friendly regulatory stance on staking compared to previous expectations, and a mechanism for fund creation and redemption.
The flow is choppy every day. The first week of August features one of the biggest Bitcoin leaked prints since launch, with Ethereum temporarily seeing reds that have suspended several consecutive wins.
These reversals were offset by late August bids trimming works and late August bids on ETH vehicles around mid-month, following the Sosovolu dashboards for each category. Variability highlights how a small number of large approved participants can shake their daily prints, despite the monthly tape showing clear divisions.
Q4 Turning Circle?
Until September and the fourth quarter, the test is whether the August pattern will last.
The ETF wrapper now holds a significant share of the supply of each asset, with Ethereum’s footprint rising from a low base.
JPMorgan writes that Ethereum Holdings, both the ETF and the Ministry of Corporate Treasury, could continue to grow.
For now, the August scorecard is read as rotation month. It costs around $3.9 billion from Bitcoin Fund to an Ethereum Fund that costs around $750 million.
If Ethereum ETFs repeat their pace in the fourth quarter of August, the cumulative net inflow exceeded $11 billion at the end of the year, nearly doubled their current ETF holdings, or more than 10% of distribution supply, measured against approximately 1200.7 million ETH.
Its size approaches the current share of Bitcoin, where Ethereum ETF penetration is located near 6-7%, and reconstructs the benchmark allocation agency references when weighing crypto exposures.
Such a shift also remains low trading Ethereum in the spot market and could enhance liquidity compression during periods of directional demand.
The large ETF balance also increases the pool of assets controlled by redemption and creative dynamics that determine the flow of arbitrage, custody, and settlement, so it is not limited to price.
If the inflow is maintained, Q4 is the first quarter when Ethereum ETF moves from the catch-up stage to comparable weighted sheets alongside the Bitcoin ETF in its portfolio structure, affecting the way issuers, market makers and financial desks manage crypto risk in 2026.
