Bitcoin ETFs Lose $291 Million Amid Inflation Fears as Ethereum Attracts Institutional Investment

Ethereum’s popularity has surged in August 2025, fueled by rising inflation data. Bitcoin-backed ETFs have seen significant outflows, signaling a trend of institutional investors moving capital towards Ethereum. This shift is primarily driven by the need for deflationary models and utility-driven applications, as institutions seek to counter inflationary pressures. Ethereum ETFs have conversely witnessed robust inflows from major institutions seeking growth in decentralized finance. These trends indicate that Bitcoin may be facing increased competition from Ethereum while institutions are repositioning their portfolios according to evolving market dynamics.