TL;DR
- Spot Ethereum ETFs added $17 million in a single day, securing 20 straight days of net inflows and pushing July’s total to a record $5.43 billion.
- BlackRock’s ETHA and Fidelity’s FETH led gains while Grayscale’s ETHE saw slight outflows.
- Regulatory signals and interest in altcoin ETFs could open up more crypto options for diverse investors.
Spot Ethereum exchange-traded funds keep extending their lead as preferred crypto investment vehicles. On Thursday, they locked in their 20th consecutive day of net inflows, attracting $17 million more, according to SoSoValue. BlackRock’s iShares Ethereum Trust (ETHA) recorded the highest individual daily inflow at $18.2 million, followed by Fidelity’s FETH with $5.62 million. Grayscale’s ETHE saw a new outflow of $6.8 million, but overall the trend stayed firmly positive and continues to draw attention from both new and seasoned investors looking to diversify their portfolios.
July’s net inflows reached $5.43 billion, a massive jump from June’s $1.16 billion, showing the strongest monthly surge since launch. This run boosted total cumulative net inflows for Ether ETFs to $9.64 billion. Combined, these funds now hold over $21 billion in assets, amounting to almost 5% of Ethereum’s market capitalization. Analysts expect these figures to keep climbing as Ethereum’s role in decentralized finance grows stronger and institutional players gain more exposure to the asset through regulated products.
Investor Rotation From Bitcoin Strengthens
While Ethereum’s momentum grows, spot Bitcoin ETFs saw net outflows of $114 million the same day. Analysts point to a rotation as investors who missed Bitcoin’s surge above $123,000 last month look for fresh opportunities. Ethereum’s recent rally to nearly $3,933 strengthened this shift, showing almost 60% gains since late June, helping to restore optimism among traders betting on altcoins.
Trading volumes also surged alongside inflows. SoSoValue data showed that July’s total trading activity for Ether ETFs climbed to $33.87 billion, more than tripling June’s numbers. Increased volume indicates a stronger market and higher investor confidence in Ethereum as a core crypto holding that continues to attract institutional capital worldwide.
Push For Altcoin ETFs Gains Speed
Major issuers like Grayscale and Franklin Templeton are preparing spot ETFs for other tokens, including Solana and XRP. At the same time, comments from SEC Chair Paul Atkins have opened doors by clarifying that most crypto assets do not classify as securities. If momentum holds, spot ETFs beyond Bitcoin and Ethereum could soon expand investor choice further and cement crypto’s place in mainstream finance.
