Ethereum News Today: July Crypto ETF Inflows Hit $7.1 Billion Amid Regulatory and Protocol Upgrades

Generated by AI AgentCoin World
Monday, Aug 11, 2025 10:26 pm ET1min read
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Aime RobotAime Summary

- July’s crypto ETF market saw $7.1B inflows, driven by spot Bitcoin and Ethereum ETFs, as institutional investors seek digital asset exposure amid macroeconomic uncertainty.

- U.S. SEC’s July 29 approval of in-kind creation/redemption for Bitcoin/Ethereum ETFs improved operational efficiency, aligning with traditional commodity models and reducing tracking errors.

- Ethereum’s Pectra upgrade (EIP-7702) and $5.3B monthly inflows boosted its ecosystem, with ETF assets under management reaching $19B since launch.

- Bitcoin ETFs led year-to-date inflows, but Ethereum’s 30-40% capture potential could push its price toward $5,000–$6,000, supported by rising futures open interest ($30B+).

July’s crypto ETF market experienced a significant boost, driven by record inflows into spot

Bitcoin
and
Ethereum
ETFs. Institutional investors are increasingly allocating capital to regulated exposure in digital assets, particularly amid broader macroeconomic uncertainty. U.S.-listed spot Ethereum ETFs alone saw $5.3 billion in inflows during the month, contributing to a total of $7.1 billion for 2025 so far [2]. This trend aligns with the broader ETF landscape, where ETFs overall attracted $121 billion in investor inflows in July, one of the strongest months of the year [3].

The inflows were further supported by a structural change in the market: the U.S. Securities and Exchange Commission approved in-kind creation and redemption mechanisms for spot Bitcoin and Ethereum ETFs on July 29 [4]. This development allows authorized participants to use digital assets instead of cash, reducing tracking error and bid-ask spreads, and bringing operational efficiency closer to traditional commodity ETF models [4].

Ethereum’s Pectra upgrade, which introduced EIP-7702 smart accounts and raised validator balance limits, coincided with these ETF developments. The protocol enhancements improve transaction flexibility and scalability, potentially attracting more capital into the Ethereum ecosystem [4]. SoSoValue data reveals that Ethereum ETFs have accumulated $19 billion in assets under management since their launch, with the majority of inflows occurring in the past month [4].

Bitcoin ETFs continue to lead in net flows. Farside Investors and SoSoValue data show that year-to-date inflows into Bitcoin ETFs are significantly higher than those for Ethereum. If Ethereum can capture 30–40% of Bitcoin’s inflow pace, it could push its price toward the $5,000 to $6,000 range based on historical price elasticity [4]. The ETH/BTC price ratio, currently below previous cycle highs, suggests there is potential for further relative performance shifts if capital continues to rotate into Ethereum.

Derivatives markets are also adapting, with Ethereum futures open interest surpassing $30 billion in May and remaining elevated into the third quarter. This liquidity supports both hedging and directional strategies linked to ETF flows [4]. The convergence of improved ETF mechanics and Ethereum’s protocol upgrades is creating conditions where capital inflows can more directly influence on-chain activity.

With $6.7 billion in inflows into Ether-dedicated ETFs this year, the institutional shift toward digital assets appears to be accelerating [1]. As the market continues to evolve, tracking Ethereum-to-Bitcoin inflow ratios, ETH/BTC price movements, and on-chain staking trends will be critical in assessing whether Ethereum can capitalize on its growing ETF demand [4].

Source:

[1] https://www.tradealgo.com/news/bitcoin-nears-record-as-treasury-investors-boost-the-crypto-market

[2] https://www.etf.com/sections/features/ether-nears-record-highs-etf-demand-surges

[3] https://www.planadviser.com/etfs-may-grow-to-1-3t-by-year-end/

[4] https://cryptoslate.com/why-5-4-billion-in-july-inflows-could-fuel-ethereums-biggest-rally-yet-toward-6k/