Crypto ETF Flows Hit Record Highs as ETH Dominates
According to crypto asset manager CoinShares, Bitcoin and Ethereum ETFs have set a new record with $11.2 billion in combined monthly inflows during July. This tally may not be final.
Digging deeper, Ethereum ETFs alone generated an unprecedented $1.6 billion inflow last week. For the year-to-date, Ethereum funds have already surpassed their entire 2024 performance, amassing $7.8 billion in inflows.
Their manager highlights Ethereum’s smaller market cap compared to Bitcoin, making it more susceptible to significant capital movements.
“With ETH’s market capitalization still just one-fifth of BTC’s, it takes far less institutional and Corporate Treasury capital to move the needle signaling a dynamic that appears to be playing out in real time,” wrote QCP Capital analysts.
Readers should note that while $7.8 billion is a record for the year, this impressive figure is concentrated in only nine months since Ethereum ETFs were approved just last year.
Elsewhere, alternative coin ETFs saw notable activity. Solana and XRP funds attracted inflows of $311 million and $189 million respectively, while Bitcoin ETFs experienced a minor net outflow of $175 million last week.
CoinShares Research Head James Butterfill characterized the market movement: <span class="italic">"This has raised the question of whether we are entering an 'altcoin season,'"</span> noting considerable inflows into Solana and XRP. However, he speculates this "alt resurgence tapered off quickly," as other coins like Litecoin and Bitcoin Cash saw net outflows.
While the inflows may be driven in part by anticipation of potential future ETF launches, Butterfill also touches upon the ongoing regulatory uncertainty surrounding crypto funds. Just last week, the SEC approved and then halted a conversion process for a crypto index fund into a spot ETF.
Currently, as the month nears its conclusion, both Bitcoin and Ethereum are positive. Bitcoin trades near $119,000, having climbed approximately 0.7% over the prior 24 hours.
Summary
Crypto asset manager CoinShares reported record inflows into cryptocurrency exchange-traded funds (ETFs) during July, with Bitcoin and Ethereum funds collectively pulling in over $11.2 billion. Ethereum ETFs generated particularly strong performance, logging a record $1.6 billion in inflows last week alone and $7.8 billion year-to-date, exceeding their total 2024 results in just nine months. Market observers emphasize ETH’s smaller combined market capitalization compared to Bitcoin, estimated at around 1/5th, as a key reason for heightened sensitivity to capital movements. Simultaneously, other cryptocurrencies saw substantial inflows, notably Solana and XRP, while Bitcoin experienced relatively minor outflows last week, fueling discussions about potential “altcoin season” in the market.
