Ethereum News Today: Ethereum ETFs Outpace Bitcoin 25x in July as $1.85B Inflows Drive Gains

Bitcoin and Ethereum ETFs experienced divergent inflow trends in July 2025, with Ethereum-based products surging ahead of their Bitcoin counterparts. Ethereum ETFs reported $452.8 million in net inflows for the week ending July 25, significantly outpacing Bitcoin ETFs, which recorded $130.8 million in the same period [5]. This marked a pivotal shift, as BlackRock’s Ethereum Trust (ETHA) became the dominant vehicle for Ethereum ETF flows, surpassing its Bitcoin counterpart (IBIT) in weekly capital gains for the first time since its launch [3]. The disparity widened when Ethereum ETFs saw $1.85 billion in net inflows during the week of July 21–25, a 25-fold gap compared to Bitcoin’s $74 million [1][4]. This trend extended Ethereum ETFs’ inflow streak to 16 consecutive days, with cumulative inflows reaching $9.33 billion as of July 18 [5].

The momentum behind Ethereum ETFs is attributed to higher yield potential and institutional adoption. Ethereum-specific investment products offer 12% annualized basis trade yields, compared to Bitcoin’s 3% staking returns [4]. Institutional participation further fueled the trend, with BlackRock’s ETHA alone accounting for a substantial portion of the inflow surge. Companies like Bit Digital and Sequans Communications also increased holdings, reflecting broader institutional confidence. Emily White, a Market Analyst at Sequans Communications, highlighted the bullish sentiment driving these moves, noting the firm’s addition of 1,264 BTC [5].

The market dynamics shifted as Ethereum’s price responded to ETF activity. The altcoin reached $3,850 earlier in July before retracing slightly [9], indicating ETF inflows are influencing not only capital flows but also asset pricing. A $145 million whale purchase from Galaxy Digital further amplified Ethereum’s 3.24% price increase over 24 hours [6]. Meanwhile, Bitcoin ETFs showed mixed performance, with $130 million in inflows for the week ending July 25 following midweek outflows [5]. Despite this, Bitcoin ETFs maintained a cumulative inflow of $54.82 billion, underscoring their long-standing institutional appeal [5].

The divergence in investor sentiment reflects differing risk-return perceptions. Ethereum’s active ecosystem and staking mechanics have attracted capital seeking higher returns, while Bitcoin’s role as a store of value remains resilient. This shift aligns with broader market dynamics, as ETFs increasingly shape investor behavior and asset valuations. Analysts suggest the trend could redefine the crypto landscape, with Ethereum-based instruments challenging Bitcoin’s dominance in institutional adoption [4].

The regulatory environment also played a role, with positive sentiment supporting the integration of cryptocurrencies into traditional finance. Historical patterns indicate ETF activity correlates with broader market shifts, and the surge in Ethereum ETFs signals a structural shift toward yield-focused strategies [5]. As Ethereum ETFs continue to outperform, the implications for Layer 1/L2 ecosystems and DeFi protocols remain under scrutiny.

Sources:

[1] [Ethereum ETFs see $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] [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)

[9] [ETH Steals the Spotlight, BNB Taps New Record, BTC Cools Off](https://cryptopotato.com/eth-steals-the-spotlight-bnb-taps-new-record-btc-cools-off-your-weekly-crypto-recap/)