Bitcoin Whales, ETFs Rotate to Ethereum as BTC Defends $108k

• A single $5B whale has sold $1.1B in Bitcoin to rotate into Ethereum, according to on-chain data
• U.S. spot Bitcoin ETFs have seen $751M in net outflows in August, while Ethereum ETFs see inflows
• Bitcoin is now defending the critical $108.3k support level amid this major capital rotation

The smart money is sending a clear signal that it’s rotating out of Bitcoin and into Ethereum. While some smaller whales are still stacking sats, at least one multi-billion-dollar whale is actively dumping BTC for ETH, and the big institutional ETF flows are doing the exact same thing. With Bitcoin’s price now testing critical support, this rotation is the only story that matters right now.

A $5 Billion Whale is Dumping Bitcoin for Ethereum

The biggest tell is coming from one massive whale. Arkham Intelligence confirms a wallet holding over $5 billion has dumped $1.1 billion in BTC and swapped it straight into Ethereum on Hyperliquid in just the last 24 hours.

This isn’t a one-off trade. On-chain trackers at Lookonchain have caught the same player making big BTC sales and ETH buys all week. When an old, influential whale starts selling this aggressively, it puts serious pressure on the entire market.

Related: Bitcoin Handover – How Retail is Selling to Wall Street ETFs

Bitcoin ETFs Bleed $751M as Institutions Chase Ethereum

The institutional money is following the whale’s lead. U.S. spot Bitcoin ETFs are bleeding cash, with a net outflow of $751 million in August, according to SoSoValue. That breaks a four-month hot streak of inflows and shows institutional demand is drying up. It’s a classic example of the ongoing Bitcoin handover, where the new Wall Street money is proving to be less committed than the early adopters.

Meanwhile, U.S. spot Ethereum ETFs are seeing the opposite trade, pulling in over $3.87 billion in net new cash in August, with BlackRock’s ETHA leading the pack.

The Bottom Line: Bitcoin is on the Ropes at $108.3k

If you were to set aside the long-term predictions this weekend, the only chart that would matter for next week starting September is the one showing Bitcoin struggling at the $108K support level.

Earlier this week, JPMorgan analysts stated that the Bitcoin price is undervalued relative to gold and predicted that the flagship coin will hit $126k before the end of this year. According to JPMorgan’s analysts, BTC price is well positioned to rally to a new all-time high in the near future fueled by rising adoption from corporate investors implementing Bitcoin as a treasury management tool.