Ethereum News Today: Ethereum ETFs Outpace Bitcoin by 25x as 12% Basis Trade Drives 1.85B Inflows

Bitcoin and Ethereum exchange-traded funds (ETFs) witnessed a significant shift in capital flows during the week of July 21–25, 2025, with Ethereum-based products outpacing their Bitcoin counterparts by a wide margin. Ethereum ETFs recorded a record $1.85 billion in net inflows, a 25x multiple of Bitcoin ETFs’ $74 million net inflows [1]. This surge marked a reversal of long-standing trends, as BlackRock’s iShares Ethereum Trust (ETHA) surpassed its Bitcoin-focused counterpart (IBIT) in weekly capital gains [3]. The inflows coincided with Ethereum’s annualized basis trade yields of 12%, outstripping Bitcoin’s 3% staking returns, and highlighted institutional confidence in the asset’s post-merge ecosystem [4].

The dominance of Ethereum ETFs extended to a 16-day cumulative inflow streak, with total assets now exceeding $9.33 billion [5]. In contrast, Bitcoin ETFs, while still attracting $130.8 million in net inflows for the same period, faced midweek outflows that limited their growth [5]. BlackRock’s ETHA emerged as the second-largest ETF in net inflows, driven by Ethereum’s active staking market and basis trade mechanisms that allow investors to borrow ETH at a discount to the spot price [1]. A $145 million whale purchase from Galaxy Digital further amplified Ethereum’s price momentum, pushing it to a 24-hour high of $3,850 [6].

Institutional participation in Ethereum ETFs has exceeded historical records, with companies like Bit Digital and Sequans Communications expanding their holdings. Sequans Communications’ Emily White noted, “Our addition of 1,264 BTC is a reflection of the current bullish sentiment surrounding Bitcoin ETFs,” underscoring the competitive dynamics between the two assets [5]. On-chain data reveals a structural shift, with Ethereum’s institutional usage hitting record levels and Bitcoin maintaining a 6.5% market cap share [5].

The implications of these inflows span financial, political, and technological domains, signaling increased integration of cryptocurrencies into traditional finance. Positive regulatory sentiment has accelerated this transition, with ETF activity correlating to broader market shifts. Analysts suggest that Ethereum’s yield-generating strategies and post-merge upgrades position it as a compelling alternative to Bitcoin’s static staking model [1]. However, Bitcoin ETFs remain resilient, with cumulative inflows totaling $54.82 billion, highlighting the asset’s enduring appeal despite short-term outflows [5].

Market observers are debating whether the Ethereum-driven inflow surge represents a structural shift or a transient trend. While the 25x inflow disparity underscores Ethereum’s current momentum, Bitcoin’s first-mover advantage and network effects could stabilize its position over time. For now, the data underscores a pivotal moment for Ethereum ETFs, which are being positioned as key vehicles for accessing the asset’s growth potential and yield opportunities [1].

Sources:

[1] [Ethereum News Today: Ethereum ETFs 1.85B Surge 25x Bitcoin Inflows Boost](https://www.ainvest.com/news/ethereum-news-today-ethereum-etfs-1-85b-surge-25x-bitcoin-inflows-boost-12-basis-trade-rate-2507/)

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

[4] [Ethereum ETFs Outpace Bitcoin by 25x as 12% Basis Trade Drives 1.85B Inflows](https://www.ainvest.com/news/ethereum-news-today-ethereum-etfs-outpace-bitcoin-25x-12-basis-trade-drives-1-85b-inflows-2507/)

[5] [07-26-2025 Ethereum News: Spot Ether ETFs Log 453M Inflows, Extend Record Streak](https://www.binance.com/en/square/post/07-26-2025-ethereum-news-spot-ether-etfs-log-453m-inflows-extend-record-streak-to-16-days-27462321412209)

[6] [Ethereum Price Rally Fueled by 145 Million Whale Buy and ETF Inflows](https://www.xt.com/en/blog/post/ethereum-price-rally-fueled-by-145-million-whale-buy-and-etf-inflows)