Ethereum News Today: Crypto ETFs See Record $12.8B Inflows in July as Market Rallies to New Highs

Crypto ETFs experienced a record influx of capital in July 2025, with a total of $12.8 billion flowing into the products amid a broad-based rally in the crypto market. This marked the strongest monthly inflow to date and highlighted a strong investor appetite for exposure to digital assets through regulated and institutional-grade vehicles [1]. The surge in demand was driven by renewed optimism around the sector, supported by favorable macroeconomic developments and increasing adoption of crypto-based financial instruments.

The broader crypto market mirrored the momentum seen in ETFs, with the CoinDesk 20 Index recording a 21% gain in July [1]. This was among the strongest performances in recent months and signaled a broad shift in sentiment among both retail and institutional investors. The index, which tracks the performance of 20 major cryptocurrencies, reached multi-month highs, reinforcing the narrative that crypto is increasingly being viewed as a legitimate asset class.

BlackRock’s iShares Bitcoin Trust (IBIT) emerged as a key player, with the fund now managing over $86 billion in assets. This figure surpasses that of major funds like IVV and IWM [1]. The fund’s higher fee structure makes it more lucrative for BlackRock than even its flagship equity products. The performance of IBIT reflects the growing institutional interest in crypto, as well as the fund’s ability to attract large-scale capital flows.

Ethereum-based ETFs also contributed significantly to the inflow figures, with over $4.1 billion flowing into these products during the month [2]. The inflows helped drive a notable price rally for Ethereum, demonstrating how ETFs are increasingly shaping market dynamics. This trend highlights how traditional investors are using familiar investment structures to access the crypto market, reducing friction and enhancing liquidity.

The performance of crypto ETFs in July also reflects a broader normalization of the sector, with demand remaining resilient despite macroeconomic uncertainty. While the market remains volatile, the sustained inflows indicate a shift toward a more mature and institutionalized approach to crypto investing.

Earlier this week, the Securities and Exchange Commission approved in-kind creation and redemption for all spot Bitcoin and Ethereum ETFs, a technical change expected to improve efficiency and appeal for institutional investors [1]. This development allows large asset managers to swap crypto assets without triggering taxable events or facing liquidity crunches, making the funds easier and cheaper to manage at scale.

Bitcoin also reached a new all-time high of $122,408 during the month, rising by 7% [1]. The price rally, supported by strong ETF inflows and favorable regulatory developments, underscores the growing confidence in the crypto market and its integration into mainstream finance.

Sources:

[1] Crypto ETFs See Record $12.8B Inflows in July as Market Rallies to New Highs (https://www.coindesk.com/markets/2025/08/01/crypto-etfs-see-record-usd12-8b-inflows-in-july-as-market-rallies-to-new-highs)

[2] Ethereum ETFs See Record $4.1 Billion Inflows, Driving Major Price Rally (https://mlq.ai/news/)