Ethereum News Today: Ethereum ETFs Outpace Bitcoin in Inflows, Surpassing 1.8B vs. 70M Driven by Regulatory Clarity, Staking Yields

Ethereum-based exchange-traded funds (ETFs) have surged ahead of Bitcoin-focused counterparts in recent inflows, signaling a pivotal shift in investor preferences within the cryptocurrency market. Over the past week, Ethereum ETFs attracted $1.8 billion in net inflows, significantly outpacing Bitcoin ETFs, which recorded a modest $70 million [1]. This trend marks Ethereum’s third consecutive week of dominance in ETF flows, driven by regulatory advancements, improved staking yields, and growing institutional adoption [2]. The outperformance highlights Ethereum’s evolving role as a foundational asset for decentralized finance (DeFi) and tokenized real-world assets, with its post-merge upgrades and capacity to generate staking rewards differentiating it from Bitcoin’s yield-free model [1].

The surge has been amplified by recent regulatory developments, including the passage of the GENIUS Act, a U.S. stablecoin legislation signed into law by President Donald Trump. This framework is expected to benefit Ethereum, as the network underpins a majority of stablecoin transactions. Analysts note that regulatory clarity has bolstered investor confidence, coinciding with Ethereum’s price rally to approximately $3,745—a 50% increase over the past month [1]. BlackRock’s iShares Ethereum Trust (ETHA) has emerged as a key driver, adding $1.29 billion in the latest week and reaching $10 billion in assets under management in just 251 days—the third-fastest growth in ETF history [1]. Fidelity’s Ethereum Fund (FETH) also saw $380 million in inflows, bringing its assets under management to $2.3 billion [1].

The shift in inflow patterns reflects a narrowing gap between Ethereum and Bitcoin ETFs. According to senior investment strategist Juan Leon of Bitwise Asset Management, the inflow ratio has narrowed from a 3.5x gap in early July to near parity by late July [1]. Leon anticipates Ethereum ETFs will maintain their momentum in the short term, fueled by increased investor interest and the expanding availability of Ethereum-based investment products. However, he expects Bitcoin ETF inflows to rebound in the second half of the year as major institutions like Merrill Lynch and Wells Fargo begin offering Bitcoin ETFs to their clients, which could create a more balanced flow dynamic [1].

The growing preference for Ethereum ETFs underscores a strategic reallocation of capital within the crypto market. While Bitcoin remains the dominant cryptocurrency by market capitalization, Ethereum’s utility in Web3 ecosystems and its compliance-ready structure have positioned it as a preferred vehicle for diversification. ETFs eliminate the complexities of direct crypto ownership, aligning with broader market maturation trends driven by product innovation and regulatory progress [1]. Cumulative data from the week ending July 25 further reinforces this trend, with Ethereum ETFs capturing $2.4 billion in investments compared to Bitcoin ETFs’ $827 million [2]. Over the past 13 trading days, Ethereum-focused funds have seen uninterrupted inflows, a rare phenomenon in the crypto ETF landscape [2]. Daily figures also highlight Ethereum’s momentum, with a 24-hour inflow of $296.6 million surpassing Bitcoin’s $520 million on July 17 [2].

The disparity in inflows reflects broader institutional confidence in Ethereum as a compliant, custody-free vehicle for crypto exposure. However, the sustainability of these flows will depend on macroeconomic conditions, ongoing regulatory developments, and the performance of underlying assets. While Ethereum ETFs currently outpace Bitcoin funds, the long-term balance of power may hinge on institutional adoption of Bitcoin ETFs and the broader market’s response to regulatory clarity.

Source:

[1] [Ethereum ETFs May Continue Outpacing Bitcoin Funds Amid Growing Investor Interest](https://en.coinotag.com/ethereum-etfs-may-continue-outpacing-bitcoin-funds-amid-growing-investor-interest/)

[2] [Ethereum ETFs Lead with 13-Day Inflow Streak Over Bitcoin](https://alphanode.global/insights/ethereum-etfs-lead-july-24-2025/)