Ethereum News Today: Ethereum ETFs Attract $1.85B in Inflows Outpacing Bitcoin as Institutional Adoption Grows

Ethereum-based exchange-traded funds (ETFs) have outpaced their Bitcoin counterparts in attracting institutional capital, with $1.85 billion in net inflows recorded during the week of July 21-25, compared to a mere $72 million for Bitcoin ETFs. This trend marks a significant shift in investor sentiment, driven by regulatory clarity, technological upgrades, and growing institutional adoption [1]. BlackRock’s Ethereum ETF (ETHA) notably outperformed its Bitcoin-focused product (IBIT), underscoring a strategic pivot among major investors [2].

The surge in Ethereum ETF inflows reflects enduring institutional confidence in the cryptocurrency. Over two weeks, Ethereum ETFs have drawn over $4 billion in capital, with companies such as Bitmine Immersion and SharpLink Gaming collectively acquiring Ethereum worth more than $2 billion. Bit Digital, another major player, transitioned from Bitcoin to Ethereum, purchasing 120,000 ETH in recent months [3]. These moves highlight a broader shift toward Ethereum’s infrastructure, particularly after the implementation of the GENIUS Act, which provided clearer regulatory frameworks for digital assets [4].

Analysts attribute Ethereum’s momentum to structural imbalances between supply and demand. Matt Hougan, Bitwise’s Chief Investment Officer, estimates that Ethereum-focused treasuries and 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. This imbalance, combined with Ethereum’s price surge—up 50% in one month and 160% since April—suggests sustained upward pressure [5].

Ethereum-linked exchange-traded products (ETPs) have also played a pivotal role. Since mid-May 2025, Ethereum ETPs have attracted $5 billion in inflows, double their initial ten-month total [6]. This influx coincided with Ethereum’s price reaching a yearly high of $3,861, bolstered by premium trading of Ethereum treasury-focused equities such as BMNR and SBET [7].

Bitcoin ETFs, meanwhile, face a stark contrast. The latest period saw a $175 million outflow from Bitcoin ETFs, reflecting a broader realignment in institutional priorities. Nick Ruck, a market commentator, noted that Bitcoin’s “quieter phase” has created opportunities for altcoins like XRP, BNB, and Solana to gain traction, as investors diversify portfolios amid Ethereum’s rapid adoption [8].

The divergence underscores a reconfiguration of crypto market dynamics. While Bitcoin remains a dominant asset, Ethereum’s smart contract capabilities and ongoing upgrades—such as the recent post-GENIUS Act developments—are positioning it as a more dynamic investment alternative. Analysts caution that regulatory or technical hurdles could emerge, but the current trajectory—supported by $1.85 billion in weekly inflows and institutional treasuries trading at premiums—suggests a sustained shift in investor sentiment.

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)