U.S. spot Bitcoin exchange-traded funds (ETFs) have posted gains for the third consecutive trading day, signaling renewed institutional interest and improved sentiment across the cryptocurrency market. Simultaneously, Ethereum ETFs have recorded an impressive 17-day streak of net inflows, marking a shift in investor focus and potentially redefining the crypto investment landscape.
Bitcoin ETFs Rebound After Brief Outflow
According to data from SoSoValue, U.S.-listed Bitcoin ETFs saw approximately $130 million in net inflows on Friday, reversing midweek outflows that had briefly interrupted a 12-day streak of positive flows. The cumulative inflows for Bitcoin ETFs now exceed $54 billion, with total assets under management (AUM) hovering around $151–152 billion. These ETFs currently account for roughly 6.5%–6.6% of Bitcoin’s total market capitalization.
Despite a midweek dip, which saw net outflows of $131.35 million, market analysts consider the decline a typical case of profit-taking rather than a change in sentiment. BlackRock’s iShares Bitcoin Trust (IBIT), the largest Bitcoin ETF with around $86 billion in AUM, remained relatively steady during the drawdown and was a key contributor to the rebound. Other prominent funds, including ARK’s ARKB and Fidelity’s FBTC, also returned to positive territory by Friday.
This consistent performance over the past three sessions suggests that institutional investors are gradually deploying new capital with a long-term view, rather than chasing short-term momentum.
Ethereum ETFs Break Records with 17-Day Inflow Streak
While Bitcoin ETFs have shown signs of resilience, Ethereum ETFs are stealing the spotlight. On July 27, 2025, Ethereum ETFs recorded $453 million in net inflows—the highest single-day total since their launch. This surge extended Ethereum ETFs’ streak of consecutive inflows to 17 trading days, bringing year-to-date inflows to approximately $9.33 billion. Their combined AUM now stands at $20.66 billion, representing nearly 4.6% of Ethereum’s market capitalization.
BlackRock’s ETHA leads the charge, contributing $440 million to Friday’s inflows and commanding the majority share of the Ethereum ETF market. Fidelity’s FETH and Bitwise’s ETHW also posted positive inflows. However, Grayscale’s ETHE continued to experience redemptions, with $23.5 million in daily outflows, bringing its total net outflows to over $4.29 billion.
This sustained surge reflects growing institutional confidence in Ethereum, as investors seek exposure to its evolving utility in smart contracts, decentralized finance (DeFi), and tokenized assets.
Ethereum Outpaces Bitcoin in Inflows
Ethereum ETFs have consistently outpaced their Bitcoin counterparts over the past week. Over the last six trading sessions, Ethereum ETFs attracted nearly $2.4 billion, compared to about $827 million for Bitcoin ETFs. Ethereum has now led Bitcoin in ETF inflows for six consecutive days, signaling a potential shift in institutional allocation strategies.
In June, Ethereum ETFs posted a 15-day streak of inflows totaling $837 million, while Bitcoin ETFs recorded outflows amounting to $128.8 million during the same period. These trends highlight an evolving dynamic in the crypto ETF market, with Ethereum increasingly positioned as a preferred asset among institutions.
What’s Driving Ethereum’s Momentum?
1. Imminent Supply-Demand Imbalance
Analysts predict a significant mismatch between supply and institutional demand for Ethereum. Projections suggest that ETF demand could absorb as much as 5.33 million ETH over the next year—far exceeding the network’s annual issuance of around 800,000 ETH. This looming supply crunch is a major tailwind for Ethereum’s price.
2. Technical Breakout and Seasonal Strength
Ethereum recently broke out of a long-term downtrend, pushing past key resistance levels around $2,800–$2,900. If the $2,832 level holds as support, analysts believe the price could rally toward the $4,000–$6,000 range. Historically, August has been a strong month for Ethereum in post-halving years, with average monthly gains exceeding 60%.
3. Regulatory Clarity on Staking
The U.S. Securities and Exchange Commission (SEC) has indicated that Ethereum staking does not constitute securities activity. This opens the door for future ETF products that may offer staking rewards, potentially making Ethereum ETFs even more attractive to yield-seeking investors.
4. Institutional Positioning
Open interest in Ethereum futures on the CME has reached an all-time high of $7.85 billion, indicating strong institutional interest. Ethereum’s robust ecosystem, particularly its dominance in smart contracts and tokenized real-world assets, is drawing heightened attention from hedge funds and asset managers.
Bitcoin Still Dominates in AUM
Despite Ethereum’s recent surge in inflows, Bitcoin ETFs continue to dominate in terms of total assets. BlackRock’s IBIT alone holds between $70–86 billion, making it the largest Bitcoin ETF globally. Across the board, Bitcoin ETFs have attracted more than $150 billion in assets since their launch.
The recent three-day streak of net inflows has reassured markets that investor confidence in Bitcoin remains strong, even amid periodic corrections. Many institutional investors view Bitcoin as “digital gold,” a hedge against macroeconomic uncertainty, which reinforces its long-term value proposition.
Strategic Implications for Crypto Markets
Ethereum’s Bullish Trajectory:
-
The 17-day inflow streak is the longest since Ethereum ETFs launched.
-
Favorable technical indicators and strong historical performance make $4,000–$6,000 a realistic short-term target.
-
Regulatory support for staking could lead to further innovation and inflows in ETH-based ETFs.
Bitcoin’s Enduring Appeal:
-
Despite momentary pullbacks, Bitcoin ETFs continue to attract capital from long-term investors.
-
With ETF holdings accounting for more than 6.5% of total Bitcoin supply, institutional interest remains strong.
Broader Market Impact:
-
The rotation from Bitcoin into Ethereum marks a potential shift in the center of gravity for institutional crypto portfolios.
-
Future developments, such as staking-enabled Ethereum ETFs or spot Solana and XRP ETFs, could further diversify the landscape.
Conclusion
The recent divergence between Bitcoin and Ethereum ETF flows highlights a pivotal moment in institutional crypto investing. While Bitcoin maintains dominance in total AUM, Ethereum is clearly capturing increasing attention due to its technological flexibility, growing utility, and favorable regulatory developments.
As Ethereum ETFs continue to break records and Bitcoin ETFs regain momentum, both assets appear poised for further growth—each appealing to different segments of institutional investors. Whether this trend signifies a lasting realignment or a short-term rotation, one thing is clear: crypto ETFs have become a central vehicle for mainstream adoption and capital deployment.
