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Crypto Investments Hit Record July Flows, Spotlight on ETH Demand
Crypto investment products attracted record monthly inflows in July, highlighting growing institutional demand for Ethereum (ETH), according to CoinShares data. By July 26, the total inflows reached a staggering $11.2 billion, dwarfing the previous monthly high of $7.6 billion recorded in December 2024.
Historically dominated by Bitcoin (BTC) products, this month saw them capture only half of the total segment’s inflows. The lion’s share stemmed from Ethereum offerings.
Ethereum products notably led the charge, with US ETH ETFs attracting another $157 million on Monday. This trend underscores a gradual movement of institutional capital away from BTC towards ETH.
While BTC retains its narrative appeal as “digital gold,” its position as the largest-cap cryptocurrency ensures media attention. However, Ethereum’s increasing significance stems from its evolution and recent regulatory positive, like the enactment of the GENIUS Act.
Experts predict this regulatory environment will accelerate the US adoption of stablecoins and blockchain-based payments. CK Zheng, Co-founder of ZX Squared Capital, anticipates exponentially greater institutional demand for ETH, potentially pushing its price towards $10,000 during the ongoing bull market. ETH, currently trading around $3,750, has already increased 54% year-to-date (+12.5%) compared to BTC’s +26%.
Despite Bitcoin’s edge, analysts suggest current altcoin enthusiasm might follow the “catch-up trade” dynamic. Other cryptos like Solana and XRP also saw inflows, totaling $860 million month-to-date, as established players seek to benefit from institutionalization. CoinShares Research Head James Butterfill notes altcoin inflows might be driven more by anticipation for US ETFs than broad-based interest.
The institutional focus on crypto extends to corporate treasury strategies. Mill City Ventures recently conducted a $450 million private placement to build a treasury reserve centered around SUI, the token of the Sui blockchain. Furthermore, CEA Industries aims to establish the world’s largest publicly listed BNB Chain treasury strategy.
Access to altcoin exposure via traditional brokerage accounts could drive continued interest in altcoin-focused companies and ETPs. While demand for these focused companies might lessen as more diverse crypto products launch (anticipated later this year), institutional investors remain focused on assets with sustainable business models, echoing traditional finance criteria.
