Bitcoin ETF Inflows Plummet to $72 Million as Ethereum Funds Haul in Nearly $2 Billion

Bitcoin ETF Inflows Plummet to a Fraction of Ethereum’s Surge

Last week saw U.S.-listed spot Bitcoin ETFs draw just $72 million in net new capital, a dramatic 97% plunge from the $2.39 billion they absorbed in the prior seven days. In contrast, spot Ethereum ETFs continued their blistering run, attracting $1.85 billion in fresh assets—only slightly below July’s record $2.18 billion haul . Though BTC-USD itself rallied modestly by 0.8% to trade around $119,077 early Monday, the drastic divergence in ETF inflows underscores a rot in Bitcoin’s short-term institutional appetite.

July Sees $6.02 Billion Flood into Bitcoin ETFs vs. $5.43 Billion into Ethereum

Over the full month of July, Bitcoin ETFs amassed $6.02 billion—up 30% from June’s $4.60 billion—while Ethereum counterparts set a new monthly record at $5.43 billion, soaring 369% month-on-month and eclipsing May’s $564 million by nearly tenfold . That monthly Ethereum tally translates to roughly ₩7.62 trillion, and BlackRock’s IBIT alone now holds $85 billion in managed BTC, reflecting a 1:1 backing structure that leaves no room for synthetic exposure . Despite Bitcoin’s larger market cap, Ethereum’s relatively smaller float means inflows drive outsized on-chain and price impacts—a phenomenon investors can no longer ignore.

Crypto ETFs Best Vanguard’s VOO with $12.8 Billion Inflows in July

In aggregate, U.S. spot crypto ETFs—spanning Bitcoin, Ethereum, and newly listed Solana products—collected a staggering $12.8 billion in July, surpassing Vanguard’s S&P 500 fund VOO and its $632 billion AUM record pace . Bitcoin ETFs accounted for nearly half of this total, yet their daily pace slowed to $600 million per day from an average of $300 million, pointing to a maturing market where other protocols are vying for capital rotation. The uptick in Solana ETF launches and pending applications for Dogecoin, XRP, and Cardano products further fragments inflows, making Bitcoin’s dominance by capital less assured.

Altcoin Rotation Intensifies as Bitcoin Volatility Eases

With BTC-USD consolidation dampening volatility, traders have shifted seat belts toward higher-beta altcoins. In the past 24 hours, Solana rallied 3.3%, XRP advanced 2.5%, and BNB led the pack with a 6.6% jump—even as Bitcoin eked out a mere 0.8% gain . The strategy of “sell the rip in Bitcoin, buy the dip in altcoins” has been underpinned by a 50% inflow surge into Ethereum ETFs year-to-date, and fresh institutional entrants diversifying into SOL-USD and XRP-USD exchange-traded funds. As volatility compression continues, the yield hunt will extend beyond Bitcoin’s core into the broader digital-asset universe.

Regulatory and Macro Drivers: Fed, Trade Deals, and Trump’s Crypto Report

Capital flows into crypto ETFs have coincided with a flurry of policy moments: the U.S.-EU trade agreement, Federal Reserve minutes hinting at rate-cut dissent from Bowman and Waller, and a White House working group report urging CFTC oversight of spot crypto markets . That report also calls for regulatory safe harbors to stimulate innovation, a move that could unlock further ETF applications for tokens currently in limbo. Meanwhile, expectations of a Fed pause at 4.25%–4.50% today have momentarily bolstered risk assets, yet any hawkish surprise could throttle Bitcoin ETF momentum and reverse altcoin rotations in an instant.

On-Chain Fundamentals Underpin Long-Term Confidence

Despite short-term price stagnation, network metrics for BTC-USD and ETH-USD remain robust. Transfer counts and fee generation have ticked upward, and stablecoin reserves approached cycle highs, suggesting ample dry powder on the sidelines . Bitcoin’s order book, noted for its balanced bid-ask structure, is now poised for a directional catalyst—either a break above $118,644 to test $141,000 or a drop below $115,000 that could amplify profit-taking. The 20-day and 50-day EMAs at $113,900 and $115,500 respectively anchor immediate support, with RSI neutral-bullish at 52, pointing to indecision that inflows could soon resolve.

Technical Crossroads: Will ETF Flows Ignite the Next Bitcoin Breakout?

Chart patterns show BTC-USD locked in a narrowing range since late June, resembling a symmetrical triangle on the daily timeframe. A successful retest of the lower boundary near $115,000—fortified by the recent drop in ETF inflows—could set the stage for a squeeze back toward $120,000. Conversely, a decisive breakout above the triangle’s upper trendline around $118,500, fueled by renewed Bitcoin ETF subscriptions, would open the door to $125,000 and beyond. Short interest across major ETFs remains elevated, creating the potential for a rapid short-squeeze should institutional flows reverse their current lull.

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