Bitcoin ETFs See $178.9M Inflows as Binance Holds 29% Volume Share

The 11 spot Bitcoin exchange-traded funds (ETFs) trading in the U.S. recorded strong inflows on Thursday, August 28.

On this day, the ETFs saw inflows reaching $178.9 million, demonstrating strong confidence among institutional players for Bitcoin (BTC).

Despite the soaring ETF inflows, exchanges are still leading in Bitcoin reserves. CryptoQuant data revealed that the Binance exchange holds over 29% of BTC spot trading volume.

Surge in Bitcoin Demand Via Bitcoin ETFs

The U.S.-based spot Bitcoin ETFs have emerged as major players in BTC trading. According to Farside Investors data, the spot BTC ETFs saw inflows reaching $178.9 million on August 28.

This is one of the highest inflows recorded by the ETFs over the past few days. ARK 21Shares Bitcoin ETF from Ark Invest came first in inflows on Thursday, which amounted to $79.8 million.

The BlackRock iShares Bitcoin Trust ETF (IBIT) came second with inflows of $63.7 million, followed by Bitwise’s BITB with $25 million.

Fidelity’s FBTC also saw inflows of $4.9 million, while funds that flowed into Grayscale’s BTC amounted to $5.5 million.

These inflows reflect growing investor interest in Bitcoin through regulated investment vehicles like ETFs. These funds have allowed investors to gain exposure to BTC without directly owning the coin.

The strong inflows also indicate growing institutional confidence in the future price direction of BTC, despite the recent downtrend.

The price of BTC has retested the $110,000 level after holding above $113,000. The leading appears set for a major breakout as the trading volume jumped moderately by 6.5% to $64.4 billion.

Binance Leads in BTC Trading

While inflows into the U.S. Bitcoin ETFs are surging, Binance remains the dominant venue for BTC spot trading.

CryptoQuant data revealed that BTC ETFs have generated daily trading volumes ranging from $5 billion to $10 billion. On active days, the ETFs even surpassed most crypto exchanges, reflecting growing institutional demand.

However, Binance, the world’s leading crypto exchange, handles much higher volumes. On peak days, Binance has recorded volumes reaching up to $18 billion in BTC trading.

This indicates that while ETFs are gaining traction, centralized exchanges remain the primary platforms for BTC trading.

Per the CryptoQuant data, Binance has registered a 29.07% trading volume spike since the U.S. November Presidential election.

Crypto.com, Bybit, and Coinbase were other exchanges with a fair percentage of market activity. The exchanges recorded 13.48%, 8.9%, and 5.57% respectively.

ETF Participation Limited in Spot Trading

Furthermore, Binance is also leading in ETH spot trading volumes, surpassing ETFs and other exchanges.

For instance, on August 13 and August 22, 2025, Binance’s ETH trading volume exceeded that of ETH ETFs by 54% and 96%.

Ethereum spot trading is heavily concentrated on crypto exchanges, with Binance accounting for 35% of ETH volume.

Crypto.com, another top exchange, follows with 20%, while ETH ETFs rank much lower, contributing only 4% of the volume. As a result, the ETH ETFs are placed in fourth position among trading venues.

This disparity suggests that institutional adoption of Ethereum through ETFs comes behind Bitcoin. This is likely due to Bitcoin’s more established market presence and perceived hedge against inflation.

However, similar to their BTC counterparts, the Ethereum ETFs have seen consistent inflows over the past few days.

On August 28, the ETH ETFs saw inflows reaching $39.1 million. This is the sixth consecutive day of inflows into the investment instrument.

BlackRock and Fidelity are the top players, recording the highest inflows within the past week.