Key Takeaways:
- Ethereum spot ETFs recorded $332 million in inflows, marking 14 straight days of investor confidence.
- Bitcoin spot ETFs faced $86 million in outflows, with top funds like Fidelity FBTC seeing sharp exits.
- Ethereum flipped Bitcoin in weekly spot trading volume for the first time in over a year, signaling a shift in market sentiment.
Ethereum is grabbing the spotlight. While Bitcoin ETFs see a steady bleed, Ethereum spot ETFs are witnessing renewed institutional demand. Here’s what’s driving the rotation and what it could mean for crypto markets moving forward.
Read More: Ethereum ETF Inflows Hit $4.97B as SEC Clears Path for Staking, Is a New ETH Cycle Here?
Ethereum Spot ETFs Surge with Record Inflows
Ethereum has firmly taken center stage in institutional portfolios this week. According to aggregated fund flow data, Ethereum spot ETFs recorded $332 million in net inflows on July 23, marking 14 consecutive days of gains.
The pace of inflows suggests investors are not just nibbling; they’re rotating heavily into Ethereum. This is likely influenced by a mix of growing DeFi utility, expected staking yield improvements, and upcoming Ethereum network upgrades such as Pectra, which aims to expand staking capabilities and long-term scalability.
Such inflows place Ethereum ETFs in the strongest position since their U.S. debut. Ethereum ETF trading volumes have now overtaken those of Bitcoin ETFs, a rare flip that hasn’t occurred since mid-2024.noted a report from CoinShares.
The ETH/BTC volume ratio climbing above 1.0 reflects this capital movement and possibly hints at a sustained trend into the second half of 2025.
Bitcoin Spot ETFs Face Outflows Amid Uncertainty
“The demand signals a reallocation of institutional portfolios toward higher-yield crypto assets,”
While Ethereum shines, Bitcoin spot ETFs are facing renewed pressure. On the same day Ethereum ETFs pulled in $332 million, Bitcoin spot ETFs saw $86 million in net outflows, continuing a three-day slide.
Leading the retreat was Fidelity’s FBTC, which alone saw $227.2 million withdrawn. Analysts suggest several factors at play:
- Profit-taking after Bitcoin’s YTD gains of over 74%.
- Regulatory unease, particularly around custody solutions and stablecoin exposure.
- Altcoin rotation, as institutional desks adjust weightings in anticipation of more dynamic ETH performance.
Despite the dip, some analysts argue that the long-term outlook for Bitcoin ETFs remains intact.
“Bitcoin’s strength is structural, but we are seeing a healthy rotation as risk appetite increases,” said a digital assets strategist at Galaxy.
Still, the contrast is stark: Ethereum’s 14-day inflow streak is a mirror opposite of Bitcoin’s current multi-day outflow pattern.
Whales Are Accumulating ETH as Volume Flips Bitcoin
$1.7 Billion in ETH Added by New Wallets
Data from Lookonchain reveals that seven newly created wallets have accumulated 466,253 ETH, roughly $1.7 billion within the past week. One wallet alone purchased 40,591 ETH, worth over $148 million, in a single day.
This whale activity coincides with Ethereum surpassing Bitcoin in weekly spot trading volume for the first time in over 13 months. According to CryptoQuant, Ethereum’s spot trading volume reached $25.7 billion last week, beating Bitcoin’s $24.4 billion.
This development is being viewed as more than a temporary anomaly. Large wallet accumulation often signals high-conviction buying from institutional or insider players.
“This kind of accumulation amid high volume rotation implies forward-looking confidence in Ethereum’s staking economy and infrastructure upgrades,” said an analyst at Nansen.
If whale behavior is indeed leading the broader market, Ethereum may be positioned for further dominance in the coming quarters.
Read More: Trump-Backed Truth Social Files to Launch Crypto ETF Holding $1B in BTC, ETH, and More
Strategic Repositioning in Crypto
The diverging flows are not what can be brushed aside as a headline. It shows us a changing landscape of the structure of the market, in which Ethereum is now starting to be viewed as a competitor to the ETFs of Bitcoin, perhaps within the next few months.
Provided that Ethereum ETFs will keep on seeing tremendous funds inflow, and that the Pectra upgrade will turn out as anticipated, ETH/BTC ratio might develop in favor of ETH.
Additionally, macro trends, like interest rate reductions, softening of inflation rates, and the increasing trend towards tokenization (e.g. RWAs), may further skew positively towards Ethereum, rather than Bitcoin, as it has a programmable framework.
On the other hand, Bitcoin still has good tailwinds, as its value as a store-of-value and its possible supply shock in 2026 due to halving. However, in the short term only Ethereum seems to be winning the distribution race.
The post Ethereum Spot ETF Inflows Hit $332M as Altcoin Rotation Surges, Flipping Bitcoin Volume appeared first on CryptoNinjas.
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