Bitcoin Leverage Hits 5-Year High as ETF Inflows Surge

Key Insights:

• Bitcoin futures leverage ratio’s 30-day change surpasses +0.4 for first time in five years.
• Spot Bitcoin ETFs record $65.94 million net inflows; Ethereum ETFs add $524 million.
• Bitcoin price consolidates near $119K with increased exchange inflows and active derivatives market.

Bitcoin’s futures estimated leverage ratio 30-day change in August 2025 reached its highest level in five years. 

The metric exceeded the +0.4 threshold, which has historically aligned with periods of heightened leverage and market fragility. 

This suggests a rapid influx of leveraged positions while Bitcoin trades near its historical peak, increasing the potential for sharp price swings.

High leverage at elevated price levels often amplifies volatility when market sentiment shifts. This environment creates conditions for sudden liquidations, particularly if funding rates remain elevated. 

Strong ETF Inflows Highlight Institutional Demand

Meanwhile, spot Bitcoin ETFs recorded net inflows of $65.94 million on August 12, marking the fifth consecutive day of positive flows. 

BlackRock’s IBIT led with $111.4 million in net inflows, offsetting outflows of $23.9 million from ARK Invest’s ARKB and $21.6 million from Grayscale’s GBTC. 

Spot Ethereum ETFs attracted $524 million over six straight days of inflows, with BlackRock’s ETHA securing $319 million in a single day.

The consistent ETF inflows indicate sustained institutional appetite for both Bitcoin and Ethereum exposure. 

Such flows can support price stability during periods of high leverage by providing steady spot market demand. However, outflows from certain funds show capital rotation remains selective among issuers and products.

Bitcoin Price Consolidates with Exchange Activity Rising

Bitcoin traded at $118,990, down slightly from an intraday high of $119,080 as per CoinMarketCap data. 

The price has consolidated near this range for several sessions, reflecting a balance between leveraged long positions and spot demand. 

Binance inflow data shows notable spikes in recent weeks, with large transfers of over 80,000 BTC on some days.

Whale and large entity inflows to exchanges have increased, suggesting potential profit-taking or repositioning. 

Meanwhile, Ethereum’s price climbed above $4,516, supported by record ETF inflows and strong sector performance. Elevated futures open interest and exchange inflows for both assets indicate active trading conditions heading into mid-August.