U.S. spot Bitcoin and Ethereum exchange-traded funds added $2.6 billion in net inflows for the week ending August 21, marking their best combined week since October 2025. However, total assets under management for the funds jumped by roughly $23 billion, with the vast majority of the growth driven by surging underlying asset prices rather than fresh capital.
According to SoSoValue data, spot Bitcoin ETFs brought in $1.92 billion in net inflows, while Ethereum funds added $697.2 million, totaling $2.6 billion in new money. Meanwhile, total assets under management experienced a much larger expansion. Bitcoin ETF assets climbed 25.4% from $76.6 billion to $96.1 billion, and Ethereum ETF assets jumped 35.9% from $10.5 billion to $14.3 billion. Combined, total assets rose by about $23.3 billion, meaning roughly $20.7 billion of the increase stemmed from pure price appreciation.
During the week, Bitcoin gained approximately 24%, moving from around $62,000 to briefly surpass $79,000 in its strongest weekly performance since 2023. Ethereum climbed about 30%, moving from under $1,900 to above $2,500.
Market analysts attributed the price increases to three primary factors. First, the U.S. Treasury doubled its long-bond buyback program, weakening the dollar and prompting investors toward assets viewed as inflation hedges. Second, President Donald Trump met with crypto executives at the White House and urged Congress to advance the Clarity Act regarding regulatory oversight. Third, a major short squeeze wiped out roughly $3 billion in bearish positions within 24 hours, followed by another $1 billion in liquidations the next day, forcing short sellers to buy back assets and driving prices higher.
Within the fund sector, BlackRock's IBIT captured the largest share of new inflows. XRP funds also saw notable activity, pulling in $39.78 million and achieving a record weekly volume of $271.74 million. Despite the weekly gains, the broader yearly deficit for the funds remains negative, though the recent rally narrowed the combined year-to-date deficit from $5.7 billion to $3.1 billion.
