Good Morning, Asia. Here’s what’s making news in the markets:

Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk’s Crypto Daybook Americas.

August delivered a rare reversal in the ETF tide: Bitcoin spot funds shed $751 million in net outflows just weeks after powering the asset to a $124,000 all-time high, while Ethereum ETFs quietly absorbed $3.9 billion, according to market data.

The divergence is striking because it marks the first time since both products launched that BTC ETFs have lost ground, while Ethereum ETFs have posted strong inflows in the same month, suggesting that institutional investors may be rebalancing their exposure.

On-chain data underscores Bitcoin’s fragility. A recent report from Glassnode shows BTC slipping below the cost basis of 1- and 3-month holders, leaving short-term investors under water and raising the risk of deeper retracement. A sustained move beneath the six-month cost basis near $107,000 could accelerate losses toward the $93,000–$95,000 support zone, where a dense cluster of long-term holders last accumulated.

Prediction markets are echoing that caution. Polymarket traders now assign a 65% chance that BTC revisits $100,000 before $130,000, while only 24% expect it to hit $150,000 by year-end. That shift suggests investors see the July rally as overextended without renewed ETF demand to back it.

Ethereum, meanwhile, has benefited from steadier inflows. ETH ETFs have logged positive net subscriptions in 10 of the last 12 months, and August’s $3.9 billion haul helped the token notch a 25% gain over 30 days despite a rough week.

With Bitcoin’s ETF tide flowing out, Ethereum’s steadier institutional bid may be emerging as a quiet ballast and perhaps the start of a rotation story heading into year-end.

Market Movements:

BTC: Market observers say crypto charts look so bearish they could be bullish, according to prior CoinDesk reporting, as BTC trades below 108k, with forced liquidations clearing leverage and a rebound likely after the Fed’s Sept. 17 decision.

ETH: Polymarket traders see Ethereum holding above $3,800 into September 5 with over 90% odds, while longer-term bets give it a 71% chance of finishing 2025 above $5,000 and slimmer odds of $10,000 or higher.

Gold: Gold climbed toward record highs as traders priced in Fed rate cuts, a weaker dollar, and political uncertainty following challenges to the central bank’s independence.

Nikkei 225: The Nikkei 225 looked set to open lower as investors weighed a U.S. court ruling against Trump’s tariffs, China-India ties, and upcoming manufacturing data.

Elsewhere in Crypto:

• Justin Sun eyes ‘Swift’ for virtual asset sector, praises Hong Kong crypto moves (SCMP)
• Trump-Backed USD1 to Supplant Tether, USDC as Top Stablecoin by 2028: Blockstreet (Decrypt)
• WLFI derivatives volume jumps 400% ahead of World Liberty’s first token unlock on Monday (The Block)