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U.S.-listed spot %Bitcoin (CRYPTO: $BTC ) exchange-traded funds (ETFs) reported a net outflow of $196 million on August 5, marking the fourth consecutive day of losses. Conversely, Ethereum ETF attracted a net inflow of $73.22 million, and iconic ETFs such as the BlackRock ETHA recorded a massive inflow of 78 million.

Ethereum-based ETFs reported the best one-day inflows in a long time. ETHA also took a significant portion of new capital and generated $89 million. VanEck and 21Shares added $5.24 million and $3.57 million in ETHV and CETH, respectively. Grayscale's ETHE was the only major ETH product to report outflows, shedding $10.91 million.

The trend indicates increasing divergence between market sentiment in the two largest cryptocurrencies. %Ethereum (CRYPTO: $ETH ) has surged 40% in the last 30 days, compared to a much smaller 4% gain by Bitcoin over the same period.

Bitcoin Outflows Mount Amid Macroeconomic Concerns

At the beginning of August, the withdrawals for Bitcoin products accelerated. The Fidelity FBTC ETF recorded the biggest withdrawals, which totaled almost $100 million on August 5. Blackrock (NASDAQ: $IBIT ) came next with an outflow of $77.42 million, and Grayscale GBTC exited the fund with $19.65 million.

These day-to-day outflows accumulate to something larger. Over the last week, Bitcoin ETFs experienced a $643 million redemption, and over $529 million left BTC-linked products in the first five days of August.

This increasing pressure has coincided with increasing fears of stagflation within the U.S. economy. A recent ISM Services PMI noted the continuing inflation, declining employment, and trade. Investors worry that the Federal Reserve will be limited in its options to loosen monetary policy in case growth declines while inflation remains elevated.

The caution also came through in the traditional equity markets, with the Nasdaq down 0.7%. Digital asset markets joined the party. As of writing, Bitcoin is trading at $114,000, a 3.6% drop from last week.

BlackRock Transfers Fuel Liquidation Speculation

Further speculation in the market has been caused by the largest asset manager in the world, BlackRock, which transferred 2,544 BTC and 101,975 ETH to Coinbase Prime. According to data by Arkham Intelligence, this transfer could indicate an intention to sell.

Transfers of this type to centralized exchanges may be seen as liquidation preparation, particularly when accompanied by fund redemptions. On August 4, BlackRock IBIT and ETHA funds experienced significant outflows of $292.21 million and $374.97 million ,respectively.

The broader market saw significant losses on that day. Spot Bitcoin ETFs lost a total of $333 million. Ethereum products experienced the largest outflow in one day, losing $465 million since the ETH ETFs' inception.