Ethereum News Today: Digital assets see $1.9B net inflow in 15th consecutive week as Ethereum surges $1.59B, Bitcoin faces $175M outflow

Digital asset investment products continued to attract significant capital flows, with a net inflow of $1.9 billion in the week ending July 26, according to CoinShares’ latest report. This marks the 15th consecutive week of positive inflows, extending the upward momentum observed in the sector. The cumulative inflow for July now stands at $11.2 billion, eclipsing the $7.6 billion recorded in December 2024 following the U.S. election [1]. Regional dynamics highlighted divergent investor behavior, with the United States leading contributions at $2 billion, while Germany added $70 million. Outflows emerged from China Hong Kong ($160 million), Canada ($84.3 million), and Brazil ($23.2 million), underscoring regional risk appetite variations [1].

Ethereum emerged as the standout performer, securing a record-breaking $1.59 billion in inflows during the period. This figure ranks as the second-largest single-week inflow in history, reinforcing its dominance in the altcoin space. Year-to-date, Ethereum has drawn $7.79 billion in capital, outpacing the total inflows from the entire previous year [1]. The surge in Ethereum demand contrasts sharply with Bitcoin’s performance, which faced a net outflow of $175 million. This divergence highlights shifting investor priorities, with altcoins gaining traction amid regulatory uncertainties and market volatility for Bitcoin.

The inflow momentum extended beyond Ethereum, with Solana and XRP attracting $3.11 billion and $1.89 billion, respectively. Smaller altcoins like SUI also benefited, drawing $8 million in capital. However, the trend was not universal. Litecoin and Bitcoin Cash (BCH) faced outflows of $1.2 million and $660,000, reflecting uneven demand across the altcoin spectrum [1]. This fragmentation underscores the selective nature of current market flows, where only top-tier assets are capturing sustained investor interest.

The sustained inflows into digital assets suggest growing institutional acceptance and retail participation, particularly in jurisdictions with favorable regulatory frameworks. The U.S. inflow of $2 billion alone accounts for nearly 95% of the week’s total positive flows, aligning with broader market trends that position the country as a key driver of crypto adoption. Conversely, outflows from China Hong Kong and Canada raise questions about regional regulatory climates and liquidity constraints in local markets.

Ethereum’s performance, in particular, reflects its unique positioning as a platform for decentralized applications and smart contracts. The $1.59 billion weekly inflow builds on its year-to-date total, indicating robust demand for infrastructure-focused assets. Analysts have previously highlighted Ethereum’s potential to benefit from enterprise use cases and layer-2 innovations, though these factors were not cited as direct causes for the recent flows. The contrast with Bitcoin’s outflow further emphasizes the sector’s evolving narrative, where utility-driven assets may be outpacing store-of-value narratives.

CoinShares’ data also reveals the cyclical nature of altcoin demand, with Solana and XRP benefiting from recent price action and network upgrades. However, the rapid decline in inflows for other altcoins signals caution among investors, who are prioritizing assets with proven use cases and technological differentiation. This selective approach may persist until broader macroeconomic conditions stabilize or new regulatory frameworks clarify the sector’s long-term trajectory.

Source: [1] [BlockBeats News] [https://www.theblockbeats.info/en/flash/304795]