Ethereum is stepping into the institutional spotlight, as U.S. spot Ethereum exchange-traded funds (ETFs) record historic inflows, significantly outperforming Bitcoin funds in recent weeks. On July 24 alone, Ethereum ETFs attracted $231.23 million in net inflows, marking the 15th consecutive day of gains and the highest ever daily total for the asset.
Ethereum ETF flows. | Source: SoSoValue.
So far, July 2025 has become the strongest month in Ethereum ETF history, with total net inflows reaching $4.67 billion. This figure more than doubles its previous monthly record of $2.08 billion from December 2024. With eleven straight weeks of inflows now totalling $6.6 billion, Ethereum ETFs are showing unprecedented momentum and growing appeal among institutional investors.
Bitcoin ETFs Lose Momentum Despite Strong Month
While Ethereum ETFs shine, Bitcoin ETFs are facing a more turbulent month. Despite pulling in $226.61 million on July 24, Bitcoin funds experienced a three-day outflow streak earlier in the month, amounting to $283 million in total withdrawals. Weekly flows for Bitcoin ETFs currently sit at a net outflow of $58.64 million.
Bitcoin ETF flows, | Source: SoSoValue.
Still, the overall picture remains positive for Bitcoin, with July ranking as the third-best performing month on record. BTC ETFs have brought in $5.2 billion in net inflows so far this month. Since their launch in January 2024, these funds now hold assets equivalent to 6.54% of the total Bitcoin market cap. Analysts estimate that approximately 30% of Bitcoin’s current price growth can be directly attributed to ETF-driven accumulation.
Why Ethereum is Gaining Ground
Ethereum’s sudden rise in ETF demand marks a shift in institutional strategy. After a year of relative underperformance, ETH is now seen as a strong long-term play, particularly for funds diversifying beyond Bitcoin. This renewed confidence is reflected in the record-breaking eleven-week inflow streak, surpassing Bitcoin’s previous best of seven weeks.
The Ethereum network’s evolving fundamentals, such as its transition to proof-of-stake and increasing real-world utility in decentralised finance and enterprise applications may be contributing to its appeal. Institutional investors are likely seeing Ethereum not just as a Bitcoin alternative, but as a fundamentally distinct and potentially more versatile asset.
Market Implications and Investor Outlook
The surge in Ethereum ETF inflows signals growing confidence in altcoins and diversification beyond Bitcoin. While Bitcoin ETFs remain dominant in overall size and impact, Ethereum’s recent performance suggests it may begin to challenge BTC’s market leadership within institutional portfolios.
With ETH ETFs gaining traction and momentum continuing, many analysts believe this could set the stage for a broader altcoin rally, as confidence returns to alternative digital assets. The next few weeks will be crucial in determining whether Ethereum can sustain its pace and potentially narrow the performance gap with Bitcoin in the ETF landscape.
In summary, while Bitcoin ETFs still hold the lion’s share of market cap influence, Ethereum’s resurgence reflects a changing tide in institutional crypto investment, one that could redefine the asset hierarchy in the months ahead.
