US-listed spot Bitcoin exchange-traded funds (ETFs) are seeing a sharp reversal in fortunes this month, attracting nearly $2 billion in fresh inflows after a bruising August marked by heavy redemptions.

Data from SoSoValue shows that 12 Bitcoin ETF products logged inflows in six of the first eight trading sessions of September. Over the past four sessions alone, they have drawn roughly $1.7 billion, signaling a clear resurgence in investor appetite.

The consistency of these inflows contrasts sharply with August, when the same funds suffered $751 million in outflows.

The trend has also widened the gap with Ethereum, the second-largest crypto by market capitalization.

While Bitcoin products have attracted significant fresh capital this month, Ethereum investment vehicles have recorded over $550 million in outflows over the same period.

Nick Forster, founder of the on-chain options platform Derive, told CryptoSlate that this divergence highlights shifting sentiment from Ethereum back to Bitcoin.

According to him:

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“ETH inflows have slowed considerably, while BTC saw a meaningful spike in institutional buying yesterday. The smart money appears to be rotating back into BTC, possibly taking a breather from ETH beta after its recent run.”

Bitcoin ETFs now drive price action

The latest flows reinforce ETFs’ growing role in shaping Bitcoin’s price trajectory.

André Dragosch, head of research at Bitwise Europe, noted on X that daily net ETF flows have become the strongest determinant of Bitcoin’s market direction since US regulators approved the first spot products earlier this year.

According to him:

“Since early 2024 and the US ETF approvals, daily net flows have shown a significantly stronger correlation with subsequent returns, underscoring the extent to which institutionalized demand via ETPs now shapes price discovery.”

Notably, this is evident in the top crypto’s recent price performance. This month’s recent spate of inflows coincided with Bitcoin’s price consolidating near $114,000 and reversing the several weeks of weak performance.

Considering this, Dragosch stressed that:

“Bitcoin ETPs have become far more than an investor convenience. They are now a crucial determinant of market liquidity, performance, and the evolution of Bitcoin’s broader ecosystem.”

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Crypto Writer

Arslan Butt

Crypto Writer

Arslan Butt

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Arslan Butt is an experienced webinar speaker, market analyst, and content writer specializing in crypto, forex, and commodities. He provides expert insights, trading strategies, and in-depth analysis…

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Last updated: 

August 7, 2025

Bitcoin is holding at $116,830 as mainstream adoption is taking off in the US. Sheetz, a popular convenience store chain with locations across multiple states, is offering 50% off all purchases between 3 pm and 7 pm when paid with cryptocurrency through Flexa.

The “Crypto Crave & Save” promotion is designed to get people spending real crypto in the real world, with payments converted to fiat instantly to protect merchants from volatility.

It’s spreading. Steak ‘n Shake just reported saving 50% on payment fees by using Bitcoin over credit cards. These are signs that US businesses are starting to view digital assets as not just investments but as functional payment tools.

Regulatory Divergence Between the U.S. and EU

Across the Atlantic, the European Banking Authority has finalized draft rules giving “unbacked” crypto assets like Bitcoin a 1,250% risk weight, meaning EU banks would need €12.5 million in capital for every €1 million in BTC holdings.

While the measure may limit crypto exposure in Europe, it also formalizes Bitcoin’s place in the financial system, a step analysts say could strengthen long-term adoption.

By contrast, U.S. policy is moving in the opposite direction. President Donald Trump announced plans to allow cryptocurrencies in 401(k) retirement plans, opening the door to a $9 trillion market. Ether rose 4% on the news, and crypto-related equities rallied, with Coinbase gaining 3%, Galaxy Digital 6%, and Bitmine Immersion 8%. Galaxy CEO Mike Novogratz called it a “milestone” for integrating digital assets into mainstream finance.

Bitcoin (BTC/USD) Technicals Signal Bullish Continuation

From a charting perspective, Bitcoin remains in a bullish flag pattern that has been consolidating since late July’s high of $123,255. The pattern’s lower bound aligns with an upward trendline from April and the 50-day SMA at $113,154 — a key support confluence that has drawn consistent buying interest.

Momentum is turning positive, with the daily RSI at 54 after bouncing from earlier oversold conditions. Defending the 0.382 Fibonacci retracement at $113,682 has reinforced the case for an upside move. A breakout above $117,350 could open a path back to $123,255, with further targets at $126,981 and $131,574.

If $113,150 fails, however, short-term sentiment may turn cautious, exposing $110,725 and $107,768. Traders eyeing an entry may look for a high-volume move through $117,350 to confirm the breakout.

Bitcoin Price Outlook into Q4

The combination of rising retail adoption, favorable U.S. policy shifts, and a supportive technical structure gives Bitcoin a bullish bias heading into the fourth quarter.

If the bullish flag resolves upward, it could mark the start of a new leg higher, potentially paving the way toward the $250K–$500K price projections some analysts are targeting for 2025.

With institutional and retail demand converging, BTC’s current consolidation may be less a pause than a launchpad.

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The project is audited by Consult and built for scalability, simplicity, and trust.

Investor interest is surging, with the presale already surpassing $7.4 million and only a small allocation remaining.

HYPER tokens are currently available at just $0.012765, but that price is set to rise in the next 3 days.

You can buy HYPER tokens on the official Bitcoin Hyper website using crypto or a bank card.

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Bullish, the institutional crypto exchange backed by tech billionaire Peter Thiel, is targeting a valuation of up to $4.23 billion in its U.S. initial public offering, according to a regulatory filing submitted on Aug. 4.

The company is offering 20.3 million shares priced between $28 and $31, potentially raising as much as $629.3 million, Reuters reported the same day.

If successful, Bullish would debut at a steep discount to the $9 billion valuation it once pursued in a failed 2021 merger with a blank-check company. That earlier deal was scrapped in 2022 due to regulatory uncertainty.

This IPO attempt comes amid a friendlier policy environment under the Trump administration, including the recent passage of the GENIUS Act, which outlines the first federal guidelines for stablecoins and has helped reinvigorate interest in crypto-related equities.

Bullish, led by former New York Stock Exchange president Thomas Farley, said in its prospectus that it plans to convert a substantial portion of the IPO proceeds into U.S. dollar-backed stablecoins with the support of one or more token issuers. The move mirrors the recent trend among crypto firms to anchor reserves in regulated digital dollars.

While Bullish posted a $349 million loss in the first quarter of 2025, driven largely by mark-to-market declines in its crypto holdings, investors are likely to focus more on core exchange profitability and operational efficiency.

The offering is being led by J.P. Morgan, Jefferies, and Citigroup. Shares are expected to trade on the New York Stock Exchange under the ticker symbol “BLSH.”

Bullish’s filing comes just days after Coinbase, the largest publicly traded crypto exchange, reported a decline in second-quarter profit amid sluggish trading activity. Despite the dip, broader investor sentiment appears to be shifting toward long-term structural plays in the digital asset space.

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The Algorand Foundation has released a sweeping new roadmap to revive its ecosystem and push blockchain adoption into everyday life.

Announced on July 31, the 2025+ roadmap is a strategic pivot meant to reassert Algorand’s relevance in a market increasingly dominated by competitors like Solana and Ethereum.

According to CEO Staci Warden, the Foundation is laying the groundwork for digital infrastructure that mirrors real-world economic needs.

She stated:

“We’re building infrastructure for the real economy of the future: Systems that make digital identity self-sovereign, agentic payments an everyday reality, and tokenization an important tool for wealth accumulation.”

Planned features

A key roadmap element is a redesigned protocol model called the “Project King Safety.”

This initiative, which is scheduled to roll out through 2026, aims to rework how fees and incentives operate within the network. The goal is to ensure the protocol becomes self-sustaining while maintaining robust security. A detailed position paper is expected later this year.

Meanwhile, Algorand is also reshaping its approach to governance. By the third quarter of 2025, the Foundation plans to transition its grants program to a fully community-led model.

According to the statement, the move will shift decision-making power into the hands of an on-chain governance council, empowering users to allocate resources transparently and democratically.

Further refinements to the broader governance structure will follow in the coming months, with a formal proposal and voting framework slated for release by year-end.

Additionally, the Foundation is working on a new toolkit called Algokit 4.0 that combines AI-assisted coding with faster, more modular smart contract development.

The updated suite, expected in 2026, will feature a modernized storage framework and expanded language support, streamlining the onboarding process for builders from Web3 and traditional tech backgrounds.

Push into tokenization

Another one of the most significant developments in the roadmap is the push toward asset tokenization.

Algorand is building smart contract-based representations of traditional financial instruments such as debt and equity. These tokenized products will follow ACTUS standards to meet compliance and interoperability benchmarks.

According to the network, a minimum viable product for tokenized debt assets is scheduled for Q4 2025.

This move signals Algorand’s intent to become a leader in the convergence of traditional finance (TradFi) and DeFi by offering a compliant, blockchain-native foundation for capital markets.

The tokenized asset market has already seen notable expansion, with Ethereum currently at the forefront. However, Ripple projects the sector could grow to $18.9 trillion by 2033, suggesting there’s substantial opportunity for other blockchain networks to gain ground.

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Between July 21 and 25, the total stablecoin market cap increased by $4.505 billion to reach $265.22 billion, a 1.73% expansion. Over the same timeframe, total value locked (TVL) in DeFi dropped from $140.804 billion to $135.934 billion, a 3.46% drawdown.

While the rise in stablecoin supply could be interpreted as a sign of incoming capital, the simultaneous drop in DeFi TVL tells us that the new liquidity isn’t being deployed; it’s waiting.

Ethereum saw its TVL fall 2.53% in the past 24 hours despite leading a 7-day climb of over 7.5%. Its price remained relatively stable over the three days, jumping to $3,707 on July 24 and returning to $3,565 on July 25, posting a net gain of just 0.78%.

Price stability paired with a declining TVL and expanding stablecoin base indicates a shift in the market. Capital seems to be rotating out of yield-bearing DeFi positions into liquid, passive stablecoins.

The TVL to stablecoin supply ratio, an effective proxy for on-chain capital efficiency, fell from 0.535 to 0.513 over the past three days. The drop suggests that on-chain capital is growing more risk-averse. With fewer stablecoins being deployed in DeFi protocols and more sitting idle in wallets, bridges, and exchange balances, traders seem to be preparing for another bout of volatility.

This caution is clearly seen in data from DeFi Llama. Ethereum accounts for $81.094 billion of total DeFi TVL and $133.008 billion in stablecoins, yielding a TVL/stablecoin ratio of 0.61, close to the market average. However, a deeper look across other chains shows a fragmented landscape with sharp differences in capital utilization.

Ethereum anchors, Tron hoards

Tron carries $81.989 billion in stablecoins (nearly a third of the entire market), but only $5.766 billion in TVL. That ratio of 0.07, the lowest among top chains, confirms Tron’s role as a stablecoin bridge and settlement layer rather than a yield-driven ecosystem. The new $4.5 billion in stablecoins that entered circulation this week appears to have landed primarily on Tron, Ethereum, and a few L2s like Base and Arbitrum.

Arbitrum and Base showed more balanced deployments. Base holds $4.171 billion in stablecoins and $4.164 billion in DeFi TVL, nearly a 1:1 ratio. Arbitrum follows closely with $3.492 billion in stables and $2.889 billion in TVL, implying capital is actively deployed. In contrast, Solana and BSC maintain moderate deployment ratios of 0.84 and 0.61, respectively. However, both saw sharp one-day drawdowns in TVL, with Solana losing as much as 10%.

Sui and Avalanche show the inverse pattern, with more TVL than stablecoins. Sui has a 2.11 TVL/stables ratio, suggesting capital on the chain is being held in volatile or native assets like LSTs, bridged tokens, or RWAs rather than in stablecoins. Avalanche, too, shows a slight over-indexing in TVL versus stable liquidity.

The combination of growing stablecoin supply and falling TVL is counterintuitive in a healthy, bullish market, where stablecoin mints are often a precursor to yield deployment and leverage. The change we’ve seen in the past three days implies that traders have become slightly more risk-averse.

This may be due to several different factors. DeFi lending rates across protocols remain low, reducing the appeal of stablecoin carry trades. Leverage unwind on perps and restaking positions may be spilling into DeFi TVL. Larger capital pools could also be waiting for new opportunities to deploy.

Stablecoin dominance data supports this interpretation. With USDT holding 61.80% of the total stablecoin market, capital is consolidating in the most liquid, CEX-friendly unit. This choice reinforces the view that large holders are keeping their options open. They want to be able to exit quickly or rotate into other assets like BTC/ETH/perps without slippage.

While DeFi TVL fell nearly $5 billion over three days, ETH managed to stay afloat, even posting a modest gain. This decoupling implies that ETH price action is driven more by structural factors than organic DeFi growth.

That said, if idle stablecoins on Ethereum and L2s eventually rotate back into DeFi through restaking, LSTs, or new incentive programs, ETH could benefit as demand for blockspace rises and staking-derived fees increase. Conversely, if stablecoin capital remains undeployed and ETH fails to hold its current range, the lack of DeFi bid support could become a tailwind for ETH/BTC rotation.

The post Capital shifts to stablecoins as DeFi protocols bleed TVL appeared first on CryptoSlate.

Ethereum exchange-traded funds (ETFs) are recording a remarkable surge in investor interest, consistently outperforming their Bitcoin counterparts throughout the past week.

SoSo Value data shows that spot ETH ETFs attracted $231.23 million in new capital on July 24, edging past the $226.61 million net inflows recorded by spot Bitcoin ETFs.

When the timeline is extended to the past six trading days, spot ETH ETFs have received nearly $2.4 billion in net inflows, almost triple the $827.6 million logged by Bitcoin ETFs in the same period.

This trend reflects a broader shift in institutional investor sentiment, with attention moving increasingly toward Ethereum-based products.

Speaking on the milestone, crypto analyst Bec said:

“This is the first time in ETF history that Ethereum has consistently outperformed Bitcoin in daily inflows across multiple trading sessions. It’s clear ETH is officially regarded as a institutional grade asset.”

Ethereum ETFs momentum

The inflow momentum has propelled Ethereum ETF holdings to new record heights.

In July 2025 alone, ETH ETFs have absorbed more than $4.4 billion in inflows, exceeding the total inflows from the entire previous 12-month period, which stood at $4.2 billion.

As a result, the total amount of ETH held by ETFs has jumped by nearly 50% in just two months, rising from 3.5 million ETH on May 1 to 5.6 million ETH as of July 24, according to data from the Strategic ETH Reserve. Their holdings now represent roughly 5% of ETH’s market capitalization.

BlackRock’s iShares Ethereum Trust (ETHA) has played a critical role in this run. Since July 1, ETHA has added over 1 million ETH to its portfolio, growing its holdings to 2.8 million ETH, valued at approximately $10.22 billion.

This rapid accumulation helped ETHA become the third-fastest ETF in history to hit $10 billion in assets under management.

Bloomberg Senior ETF Analyst Eric Balchunas highlighted the speed of ETHA’s growth, noting it went from $5 billion to $10 billion in just 10 days, which is “the ETF equivalent of a God candle.”

Despite the funds’ strong performance, Bitwise CIO Matt Hougan believes Ethereum is still underrepresented in ETF portfolios.

According to Hougan, investors would need to allocate an additional $7–8 billion to bring ETH exposure in line with market weight, assuming Bitcoin ETF flows remain flat.

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Tether has announced it will wind down USDT on five lesser-used blockchains after usage on those networks wanes.

Redemptions and token minting on Omni Layer, Bitcoin Cash’s Simple Ledger Protocol, Kusama, EOS, and Algorand are set to stop on Sept. 1, 2025. Remaining tokens are to be frozen on the same day, according to a statement.

Together, the five networks carry only a sliver of USDT’s roughly $156 billion float. Tether says the usage of USDT on these networks, which it touts as playing a role in the firm’s early growth, has declined “significantly” over the past two years.

“Sunsetting support for these legacy chains allows us to focus on platforms that offer greater scalability, developer activity, and community engagement — all key components for driving the next wave of stablecoin adoption,” Tether CEO Paolo Ardoino said in the statement.

The firm will redirect its focus to Layer 2 networks such as the Lightning Network and to newer blockchains that promise faster settlement and richer developer tooling.

Tether has asked its customers holding USDT on the five networks to redeem their holdings as soon as possible or request issuance of their tokens on a supported blockchain. Token holders can migrate their tokens through blockchain bridges or exchanges.

The lion’s share of Tether’s $156 billion fiat is currently circulating on Tron and Ethereum, which together make up over 95% of the total. Solana is the only other network with more than 1% of USDT’s supply in circulation, according to RWA.xyz data.

Coinbase, the largest US-based exchange, has taken a major step in its global expansion by securing approval under the European Union’s Markets in Crypto-Assets (MiCA) regulation, according to a June 20 statement.

The exchange confirmed that Luxembourg’s financial watchdog, the Commission de Surveillance du Secteur Financier (CSSF), granted it the necessary license to operate across the EU.

This regulatory green light means Coinbase can now legally offer crypto services in all 27 EU member states.

Coinbase chief policy officer Faryar Shirzad said:

“Coinbase is now licensed to operate across all 27 member states of the EU! The securing of our MICA license is a massive step forward for our business in Europe.”

Coinbase CEO Brian Armstrong met with Luxembourg Prime Minister Luc Frieden and other government officials to mark the milestone.

MiCA was designed to establish a unified set of rules for digital assets across the European Union. The framework aims to protect consumers, ensure compliance, and reduce regional regulatory fragmentation.

With the MiCA framework now in effect, the approval marks a turning point in Coinbase’s European strategy, prompting the firm to shift its regional headquarters from Ireland to Luxembourg.

The exchange’s registration under this new system positions it as the first American crypto exchange to receive formal MiCA recognition. The move helps it to join a list that includes global competitors like OKX, Bybit, and Crypto.com, who have secured the licensing.

Coinbase’s decision to anchor its European presence in Luxembourg reflects the country’s forward-leaning stance on digital innovation.

According to Coinbase, Luxembourg is a strategic jurisdiction that balances innovation with regulatory maturity. The exchange noted that the country has passed four blockchain-related laws in recent years and continues to lead digital finance policy efforts at the national level.

Considering this, Coinbase said:

“MiCA lays the foundation for a thriving crypto ecosystem, it’s equally important that policymakers continue to drive swift and ambitious initiatives to maintain Europe’s competitive edge on the global stage. The CSSF has set a high standard, and we hope to see this spirit replicated across the region.”

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