Ethereum News Today: Ethereum ETFs Attract $297M Inflows as Bitcoin ETFs Post $131M Outflows

Spot Ethereum ETFs have extended their 12-day consecutive inflow streak, contrasting with spot Bitcoin ETFs, which experienced their first net outflows on July 21 amid a broader market divergence. During the same period, BTC ETFs recorded $131 million in outflows, while ETH ETFs attracted $297 million in inflows, marking a stark shift in institutional and retail capital allocation [1]. This trend has sparked speculation about a potential reallocation of assets toward Ethereum and other large-cap cryptocurrencies, driven by factors such as profit-taking in Bitcoin’s recent rally and renewed interest in Ethereum’s fundamentals [1].

CryptoRank, a blockchain analytics firm, attributed the outflows from Bitcoin ETFs to standard rebalancing following BTC’s 10% gain in July and over 25% year-to-date rise. The firm emphasized that these outflows do not signal weakening fundamentals but rather reflect cyclical adjustments in investor portfolios [1]. Meanwhile, Ethereum’s ETF inflows have surged to $7.78 billion cumulatively, with record daily inflows of $726 million on July 16 and $297 million on July 21. This momentum has coincided with Ethereum surpassing Bitcoin in daily derivatives volume over the past week, a metric often correlated with heightened trading activity and speculative demand [1].

The altseason index, a gauge of altcoin market strength, has climbed to 60, its highest level in months, suggesting growing investor appetite for alternative cryptocurrencies. This pattern aligns with historical cycles where Ethereum’s outperformance often precedes broader altcoin rallies [1]. Analysts note that while Ethereum’s continued inflows indicate strong institutional interest, concerns about a near-term pullback persist. However, the current market positioning remains modest compared to peak futures market conditions in March and November 2024, suggesting any correction would likely be shallow and short-lived [1].

Despite Ethereum’s recent price stagnation and brief foray into undervalued territory earlier in 2025, its structural setup appears favorable for further gains in the second half of the year. The cryptocurrency’s ability to attract ETF-driven flows, coupled with its role as a proxy for altcoin performance, positions it as a key asset in ongoing capital rotation. As institutional capital continues to seek opportunities amid Bitcoin’s consolidation, Ethereum’s role as a catalyst for altseason dynamics remains central to near-term market narratives [1].

Source: [1] [Capital Shift? Ethereum ETFs Surge as Bitcoin ETFs Cool Off] [https://coinmarketcap.com/community/articles/6880d36c495f675d8ee776f8/]