Between August 18 and 22, investors withdrew $1.17 billion from spot bitcoin ETFs. The IBIT fund from BlackRock led the outflow, losing $615 million.
Instruments based on the second-largest cryptocurrency by market capitalization also saw withdrawals amounting to $237.73 million. This ended a 14-week streak of net capital inflows.
Vincent Liu, an analyst at CIO Kronos Research, commented to The Block that the approval of staking for Ethereum-based ETFs will increase network activity and could trigger a rise in altcoins.
“Ethereum is poised to take center stage,” he stated.
Nick Rak, Director at LVRG Research, noted that major holders are reducing their bitcoin positions in favor of Ethereum, anticipating further growth of the second cryptocurrency.
This trend is also reflected in market dynamics. Bitcoin’s dominance decreased from 61% at the beginning of the month to 58.17%, according to TradingView. This indicates a capital shift towards altcoins.
At the time of writing, Ethereum is trading around $4592 after recently reaching a new all-time high above $4946.
Liu added that increased volatility is likely in the short to medium term. Traders will closely monitor macroeconomic data, including U.S. unemployment claims on August 28.
Earlier, the crypto market reacted with growth to Federal Reserve Chairman Jerome Powell’s speech. The head of the regulator hinted at a readiness to lower the key rate in September.
