Ethereum News Today: Ethereum ETFs Attract $1.85B Inflows 25-Fold Bitcoin as Institutions Shift to Smart Contracts and Regulatory Clarity

US spot Ethereum ETFs recorded a record $1.85 billion in inflows during the week of July 21-25, outpacing Bitcoin ETFs’ $72 million net inflow by over 25 times [1]. This trend, part of a broader $4 billion influx into Ethereum ETFs over two weeks, reflects a strategic shift by institutional investors toward Ethereum’s smart contract capabilities and evolving regulatory environment [2]. BlackRock’s Ethereum ETF (ETHA) led the charge, amassing $1.29 billion in inflows—surpassing its Bitcoin-focused counterpart (IBIT)—and signaling a recalibration of institutional priorities [4]. The surge coincided with Ethereum’s price climbing 50% in July and 160% since April, with the asset reaching a yearly high of $3,861 [7].

The shift is attributed to Ethereum’s growing institutional adoption and regulatory clarity. The GENIUS Act’s reclassification of Ethereum as a digital asset under U.S. law has spurred confidence among investors, enabling firms like Bit Digital to reallocate capital from Bitcoin to Ethereum. Bit Digital’s purchase of 120,000 ETH in recent months exemplifies this trend, while broader institutional buying—led by Bitmine Immersion and SharpLink Gaming—added $2 billion in ETH to treasuries [3]. Analysts highlight structural imbalances in supply and demand as a key driver: Bitwise’s Matt Hougan estimates Ethereum-focused products could absorb up to $20 billion in ETH over the next 12 months, far exceeding the projected 800,000 ETH supply increase during the same period [5].

Ethereum’s outperformance contrasts sharply with Bitcoin ETFs, which faced a $175 million outflow during the same week. Market commentator Nick Ruck noted Bitcoin’s “quieter phase” has created opportunities for altcoins but emphasized Ethereum’s technological upgrades and smart contract infrastructure position it as a more dynamic investment [8]. Since mid-May 2025, Ethereum-linked ETPs have drawn $5 billion in inflows—doubling their initial ten-month total—and trading premiums for Ethereum treasury-focused equities (e.g., BMNR, SBET) further underscored bullish sentiment [6].

The data reflects a broader reconfiguration of crypto market dynamics. Institutional treasuries and ETPs have absorbed significant ETH volumes, reinforcing Ethereum’s role as a cornerstone of diversified crypto portfolios. BlackRock’s ETHA and other Ethereum ETFs now outpace Bitcoin offerings, with Larry Fink, CEO of BlackRock, stating the firm’s commitment to Ethereum ETFs has “redefined institutional investment in digital assets” [2]. While regulatory or technical hurdles could emerge, the current trajectory—supported by $1.85 billion in weekly inflows and premium trading—suggests sustained momentum for Ethereum in institutional adoption.

Source:

[1] [Ethereum ETFs Attract $1.8B in Inflows Surpassing Bitcoin ETFs](https://www.ainvest.com/news/ethereum-news-today-ethereum-etfs-attract-1-8b-inflows-surpassing-bitcoin-etfs-institutional-shift-technological-upgrades-drive-demand-2507/)

[2] [Ethereum Ready To Dethrone Bitcoin At BlackRock](https://www.cointribune.com/en/ethereum-ready-to-dethrone-bitcoin-at-blackrock/)

[3] [Why Ethereum's Recent Climb Is Just the Beginning of a Bigger Run](https://www.cointribune.com/en/why-ethereums-recent-climb-is-just-the-beginning-of-a-bigger-run/)

[4] [Ethereum ETFs Outpace Bitcoin as $1.85B Inflows Fuel 50...](https://www.ainvest.com/news/ethereum-news-today-ethereum-etfs-outpace-bitcoin-1-85b-inflows-fuel-50-price-surge-2507/)

[5] [Institutional Demand and ETPs Fuel ETH’s Recent Surge](https://www.cointribune.com/en/why-ethereums-recent-climb-is-just-the-beginning-of-a-bigger-run/)

[6] [Ethereum ETFs Outshine Their Bitcoin Counterparts With...](https://www.mitrade.com/insights/news/live-news/article-3-990066-20250728)

[7] [Ethereum Price: Institutions Buying Billions Here Is A Sign...](https://coincentral.com/ethereum-price-institutions-buying-billions-here-is-a-sign-eth-is-going-much-higher-heres-the-best-eth-play/)

[8] [Wu Blockchain - X](https://x.com/WuBlockchain/status/1949747708073574646)