Ethereum News Today: Ethereum ETFs draw $533M inflow as small-cap ETFs lose $542M on macroeconomic concerns

ETF flows on July 25, 2025, highlighted a dynamic shift in investor behavior, with contrasting movements across traditional equity and cryptocurrency-linked ETFs. Small-cap funds faced significant outflows, as the iShares Core S&P Small-Cap ETF (IJR) and Vanguard Small-Cap ETF (VB) lost $310.3 million and $232.1 million, respectively. IJR’s YTD decline of 2.00% contrasted with VB’s 2.67% gain, underscoring fragmented sentiment within the small-cap segment [1]. Analysts linked these outflows to ongoing macroeconomic uncertainties and inflation concerns [6].

Ethereum (ETH) ETFs dominated the crypto space, drawing $533 million in inflows on July 25. BlackRock’s ETHA fund, which hit $10 billion in assets under management (AUM) within its first year, led the charge, signaling growing institutional confidence [3]. This surge extended a 13-day inflow streak for Ethereum-linked products, outpacing Bitcoin (BTC) ETFs, which saw a $226 million rebound after three consecutive outflow days [5]. While BTC inflows marked a short-term recovery, they remained modest compared to Ethereum’s performance, indicating a near-term preference for ETH [2].

Traditional equity ETFs also saw mixed outcomes. iShares, Vanguard, and Invesco collectively attracted $4.89 billion in net inflows, with iShares leading at $1.6 billion. These flows aligned with a broader trend of investors rotating into diversified equity and factor-based strategies emphasizing growth and value tilts [4]. Despite small-cap outflows, total ETF inflows reached $5.1 billion for the day, reflecting strong liquidity in the market [2].

The strategic reallocation toward crypto and factor-driven ETFs underscored evolving asset-allocation dynamics. Ethereum’s technical momentum and institutional adoption fueled its ETF dominance, while small-cap ETFs remained vulnerable to macroeconomic risks [6]. The performance of ETHA, now a $10 billion fund, highlighted the maturation of crypto ETFs as a mainstream investment vehicle [3].

Bitcoin’s rebound, though smaller, suggested short-term volatility remained a draw for crypto exposure. However, the modest scale of BTC inflows compared to Ethereum’s performance reinforced ETH’s current advantage in investor sentiment. The Block attributed BTC’s inflows to renewed appetite for leveraging crypto market fluctuations [5].

Overall, the July 25 flows illustrated a market balancing defensive positioning in traditional equities with speculative bets in crypto. While small-cap ETFs continued to face headwinds, the resilience of Ethereum and Bitcoin ETFs pointed to a broader acceptance of digital assets as a hedge against macroeconomic uncertainties [2][6].

Sources:

[1] [AInvest](https://www.ainvest.com/news/july-25-2025-2507/)

[2] [ETF.com](https://www.etf.com/sections/daily-etf-flows/etha-gains-325m-ethereum-etf-surges-32-assets)

[3] [CoinDesk](https://www.coindesk.com/markets/2025/07/24/ethereum-etfs-attract-usd8-7m-in-first-year-inflows-as-blackrock-s-etha-fund-hits-usd10b-aum)

[4] [TradingView](https://www.tradingview.com/news/etfcom:45a57be81094b:0-etf-league-tables-ishares-vanguard-lead-thursday-inflows/)

[5] [The Block](https://www.theblock.co/post/364245/spot-btc-etfs-see-226-million-inflows)

[6] [Alpha](https://alphanode.global/insights/ethereum-etfs-lead-july-24-2025/)