Ethereum News Today: Ethereum ETFs Overtake Bitcoin in Net Inflows for First Time Signaling Institutional Shift

Ethereum exchange-traded funds (ETFs) have overtaken Bitcoin ETFs in net inflows for the first time in recent history, signaling a shift in institutional investor preferences. According to data from SoSo Value, spot ETH ETFs attracted $231.23 million in new capital on July 24, surpassing the $226.61 million net inflows recorded by Bitcoin ETFs on the same day [1]. Over the past six trading days, Ethereum ETFs have pulled in nearly $2.4 billion in net inflows, nearly triple the $827.6 million logged by Bitcoin ETFs during the same period [1]. This trend underscores growing institutional confidence in Ethereum-based products as an asset class.

The surge in Ethereum ETF activity has led to record holdings. In July 2025 alone, ETH ETFs have absorbed over $4.4 billion in inflows, exceeding the $4.2 billion added across the prior 12 months. As of July 24, ETFs now hold 5.6 million ETH, a 50% increase from May 1 levels, representing approximately 5% of Ethereum’s total market capitalization [1]. BlackRock’s iShares Ethereum Trust (ETHA) has been a key driver, adding 1 million ETH to its portfolio since July 1. Its holdings now total 2.8 million ETH, valued at $10.22 billion, making ETHA the third-fastest ETF in history to reach $10 billion in assets under management [1]. Bloomberg senior ETF analyst James Seyffert described ETHA’s growth from $5 billion to $10 billion in 10 days as “the ETF equivalent of a God candle” [1].

Analysts attribute the shift to Ethereum’s perceived advantages in institutional adoption. Crypto analyst Bec noted that this marks the first time in ETF history that Ethereum has consistently outperformed Bitcoin in daily inflows across multiple sessions, signaling its recognition as an institutional-grade asset [1]. However, Bitwise CIO Matt Hougan emphasized that Ethereum remains underrepresented in ETF portfolios. Hougan estimated that an additional $7–8 billion in allocations would be needed to align ETH exposure with its market weight, assuming Bitcoin ETF flows remain stable [1].

The momentum highlights broader structural changes in crypto asset management. Ethereum’s role in decentralized finance (DeFi) and its upcoming upgrades may be influencing institutional allocations. Meanwhile, Bitcoin ETFs, though still dominant in market capitalization, face growing competition from Ethereum-based products as investors seek diversification within the crypto ecosystem.

Source:

[1] [Ethereum ETFs Soar Past Bitcoin in New Flows as Institutional Focus Shifts] [https://cryptoslate.com/ethereum-etfs-soar-past-bitcoin-in-new-flows-as-institutional-focus-shifts/].