Over $1bn has been withdrawn from the bitcoin-ETF in a week

From 18 to 22 August, $1.17bn was withdrawn from spot bitcoin-ETFs, according to data from SoSoValue. The largest outflow was recorded in the IBIT fund from BlackRock, which lost $615 million.

Funds were also leaving Ethereum-focused products, with a cumulative withdrawal of $237.73 million, breaking a 14-week period of net capital inflows.

According to analyst Vincent Liu of Kronos Research, the approval of staking within the etherium-ETF has the potential to energise the network and push altcoin growth. “Ethereum is preparing to take centre stage,” the expert noted in a conversation with The Block.

Nick Ruck, director of LVRG Research, is of a similar opinion. He stressed that institutional investors are gradually reducing their positions in bitcoin in favour of ETH, counting on further strengthening of the second cryptocurrency.

These changes are also reflected in market dynamics: bitcoin’s dominance has decreased from 61% in early August to 58.17%, TradingView data shows. At the time of writing, Ethereum is trading around $4592, after previously hitting an all-time high above $4946.

Liu added that the market could face increased volatility in the near term. Trading participants will focus on macroeconomic indicators, including the release of US jobless claims statistics on 28 August.