Bitcoin News Today: Ethereum Outpaces Bitcoin as Institutional Inflows Hit Record $11.2B in July

Institutional investors have driven a record surge in capital into cryptocurrency markets in July, with Ethereum outpacing Bitcoin for the first time amid $11.2 billion in total inflows, according to CoinShares data. This marks a historic milestone, surpassing the previous peak of $7.6 billion in December 2024 and reflecting 15 consecutive weeks of net inflows across digital asset funds [1]. The trend underscores growing institutional confidence in blockchain-based investments, even as Bitcoin’s dominance faces challenges from altcoins.

Ethereum emerged as the standout performer, attracting $1.59 billion in institutional capital last week—the second-highest weekly inflow in its history [1]. Soso Value data corroborated the shift, showing Ethereum products outperformed Bitcoin on all five trading days. BlackRock’s Ethereum-focused product, ETHA, became a key driver, amassing over $10 billion in assets, while year-to-date inflows for Ethereum totaled $7.79 billion, already exceeding the entire 2024 total [1]. SharpLink chairman Joseph Lubin highlighted the significance, stating Ethereum is “entering its next chapter” as institutional capital and strategic leadership position it as a cornerstone of global finance [1].

Bitcoin, meanwhile, experienced $175 million in outflows last week, continuing a pattern of reduced inflows compared to altcoins like Solana and XRP [1]. The decline was further evident in short Bitcoin products, which lost $4.6 million as bearish bets waned. CoinShares research head James Butterfill noted that speculation around potential U.S. approvals for altcoin ETFs may be fueling the shift toward non-Bitcoin assets [1]. Altcoin inflows accelerated, with Solana gaining $311 million and XRP attracting $189 million, though not all altcoins shared the optimism—Litecoin and Bitcoin Cash faced outflows of $1.2 million and $660,000, respectively. Year-to-date, non-Bitcoin and non-Ethereum assets have drawn over $1.5 billion in inflows [1].

The data signals a potential “altcoin season,” defined by the CoinShares report as a period of heightened activity in non-Bitcoin tokens. This shift aligns with broader market dynamics, including Ethereum’s smart contract capabilities and institutional adoption of diversified crypto portfolios. However, analysts caution that while altcoins show promise, Bitcoin remains a critical asset in the crypto ecosystem. The $11.2 billion inflow in July highlights the maturation of institutional-grade crypto products but also reflects evolving investor strategies as market conditions evolve.

Sources:

[1] [Ethereum outpaces Bitcoin as institutional inflows hit record $11.2B in July](https://cryptoslate.com/ethereum-outpaces-bitcoin-as-institutional-inflows-hit-record-11-2b-in-july/)