Ethereum Leads Institutional Inflows While Bitcoin Lags in July

By: Isha Das

In recent developments within the cryptocurrency investment sphere, institutional investors have significantly increased their commitment to crypto assets, with Ethereum being the prime beneficiary. The latest data from July reveals that digital asset investment products saw record inflows, totaling $11.2 billion. This substantial influx far surpasses the previous peak set in December 2024, demonstrating the growing institutional confidence and interest in the crypto market.

Ethereum, the second-largest digital asset by market capitalization, has notably outperformed Bitcoin in attracting institutional funds. The data highlights a noteworthy trend where Ethereum funds attracted $1.59 billion over the past week alone, making it one of the strongest performers. This shift indicates a potential change in investment strategies, where Ethereum has become the focal point over Bitcoin.

One standout investment product is BlackRock’s Ethereum Trust ETF, which now manages over $10 billion in assets, further solidifying Ethereum’s position in the market. As Ethereum continues to shape the investment landscape, leaders in the industry are optimistic about its future prospects. Joseph Lubin, chairman of SharpLink, expressed his confidence, noting that Ethereum is transitioning into a new phase where substantial capital and leadership will propel it to the center of global finance.

The shift in focus towards Ethereum and other altcoins has sparked discussions around a possible 'altcoin season.' With Bitcoin experiencing mild outflows amounting to $175 million and a diminished interest in bearish bets, other altcoins like Solana and XRP have seen increased inflows. This change is attributed to growing speculation around upcoming altcoin-based ETFs potentially gaining approval in the United States, marking a thrilling phase for the crypto industry.