Institutional investment strategies are once again favoring Bitcoin as a “digital hedge,” following a period of strong adoption for Ethereum ETFs. Although Ethereum-linked funds saw impressive net inflows of $3.87 billion in August, major players are now reallocating capital.
On September 3, BlackRock sold $151.39 million worth of Ethereum and simultaneously bought $289.84 million worth of Bitcoin. This move is part of a broader trend of institutional investors returning to Bitcoin amid increasing macroeconomic uncertainty.
Bitcoin ETFs, led by BlackRock and Fidelity, also saw a rebound in inflows, recording $332.7 million on September 2, after experiencing outflows of around $751 million the previous month. The primary driver behind this shift is the growing expectation of Federal Reserve interest rate cuts, with prediction markets placing the odds of a September cut at 87%.
BlackRock’s significant holdings reflect this strategy, with the firm controlling nearly $84 billion in Bitcoin (3.76% of its circulating supply) compared to $12.97 billion in Ethereum (3.10% of its market share).
September 2025, Cryptoniteuae
