Bitcoin News Today: Institutional Crypto Inflows Hit $11.2B in July 2025 as Ethereum Surpasses Bitcoin on 600% Demand Surge

Institutional investors injected a record $11.2 billion into cryptocurrency investment products in July 2025, with Ethereum leading the charge as institutional capital outflows from Bitcoin signaled a shift in market dynamics [1]. According to CoinShares’ Weekly Digital Asset Fund Flows Report, Ethereum-based products attracted $1.59 billion in inflows during the month alone, surpassing Bitcoin’s total 2024 inflows and marking the second-highest weekly performance for the asset [1]. This trend reflects growing confidence in Ethereum’s blockchain infrastructure and smart contract capabilities, which have drawn interest from pension funds, hedge funds, and corporate treasuries [2].

Bitcoin, however, experienced a $175 million outflow in July, a reversal of its earlier dominance in institutional portfolios. CoinShares attributed this to the onset of “altseason,” a period typically marked by heightened interest in alternative cryptocurrencies [1]. Despite this, Bitcoin’s institutional demand surged 600% above its daily mining supply growth rate, driven by its adoption as a macroeconomic hedge [2]. A $472 million institutional purchase in July, led by firms like Strategy Inc., underscored its role in diversifying portfolios amid global uncertainty [7]. By mid-July, Bitcoin’s price reached $118,780, supported by ETF inflows and macro liquidity trends [9]. Analysts noted that Bitcoin’s evaluation through traditional financial metrics, such as yield comparisons, signals a maturing market [1].

Altcoin activity saw mixed outcomes. Solana and XRP-based funds attracted significant inflows of $311 million and $189 million, respectively, bolstered by ETF excitement and ecosystem strength [1]. Conversely, Litecoin and Bitcoin Cash recorded outflows of $1.2 million and $660,000, raising questions about their future performance [1]. CoinShares highlighted these movements as indicative of a broader altcoin bull market led by XRP and Solana, a shift likely to unfold in the coming months [1].

Regulatory clarity and infrastructure advancements underpinned the surge in institutional adoption. The conclusion of Bitcoin’s four-year market cycle in July coincided with the launch of exchange-traded products (ETPs), which simplified access for large investors [5]. Major banks expanded crypto services, offering custody solutions and trading platforms tailored to institutional needs [3]. These developments reduced entry barriers, fostering trust in blockchain infrastructure and accelerating crypto’s integration into mainstream portfolios [2].

Market analysts remain cautiously optimistic. Galaxy Digital’s Alex Thorn forecasted Bitcoin could exceed $150,000 by early 2026, citing institutional and corporate adoption [1]. Similarly, Fundstrat’s Tom Lee predicted a 300% rise in Ethereum by year-end 2025, attributing the potential rally to regulatory shifts and robust inflows [4]. However, experts warned that volatility persists due to short-term supply-side pressures from long-term holders distributing dormant coins [8]. By mid-July, Bitcoin’s price had slightly corrected to $117,947.97, illustrating the market’s evolving dynamics [10].

The July inflows mark a pivotal moment in crypto’s institutionalization. Institutions are increasingly viewing Bitcoin and Ethereum as strategic assets rather than speculative plays, with BlackRock’s Investment Institute emphasizing Bitcoin’s role as a distinct return driver in its July 2025 commentary [6]. This shift is also pushing regulators to formalize frameworks that balance innovation with investor protection, ensuring crypto’s long-term viability within global financial systems [5].

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[1] [Institutional Bitcoin (BTC) Demand Surges 600% Above Daily Mining Supply Growth](https://blockchain.news/flashnews/institutional-bitcoin-btc-demand-surges-600-above-daily-mining-supply-growth-key-metrics-for-crypto-traders)

[2] [Bitcoin (BTC) Adoption by Institutions and Governments Signals Market Maturity and Success](https://blockchain.news/flashnews/bitcoin-btc-adoption-by-institutions-and-governments-signals-market-maturity-and-success)

[3] [Institutional Crypto Adoption Grows as Top Banks Expand Services](https://www.ainvest.com/news/bitcoin-news-today-institutional-crypto-adoption-grows-top-banks-expand-services-regulatory-clarity-2507/)

[4] [Unstoppable Cryptocurrency Could Soar 300% By End of 2025](https://www.nasdaq.com/articles/unstoppable-cryptocurrency-could-soar-300-end-2025-according-tom-lee-fundstrat)

[5] [Bitcoin News Today: Bitcoin's Four-Year Cycle Ends as Institutions, ETFs, Regulation Drive 2026 Surge](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-year-cycle-ends-institutions-etfs-regulation-drive-2026-surge-2507/)

[6] [Weekly market commentary | BlackRock Investment Institute](https://www.blackrock.com/us/individual/insights/blackrock-investment-institute/weekly-commentary)

[7] [Institutions Buy $472M in Bitcoin](https://www.blockchain-council.org/cryptocurrency/institutions-buy-472m-in-bitcoin/)

[8] [BTC Long-Term Holders Begin Distribution Amid Rally](https://thecurrencyanalytics.com/bitcoin/bitcoins-dormant-coins-are-on-the-move-again-as-institutions-absorb-the-pressure-187307)

[9] [Bitcoin Price Nears $119K as Liquidity Surge Fuels Rally](https://www.tradingnews.com/news/bitcoin-price-hits-118k-usd-as-etf-demand--m2-liqiudity)

[10] [Crypto News Today Liveblog](https://m.economictimes.com/crypto-news-today-live-28-jul-2025/liveblog/122939448.cms)