Investor interest in crypto exchange-traded funds (ETFs) continues to surge, with spot Bitcoin ETFs attracting $157 million in net inflows on July 28. This marks the third consecutive day of gains for Bitcoin ETFs, with BlackRock’s IBIT leading the pack with $147.36 million in inflows. The total cumulative inflows into US spot Bitcoin ETFs have now reached $54.98 billion, with assets under management climbing to $153.19 billion, according to data from SoSoValue.
Despite a slight dip in the overall crypto market cap, the funds saw a robust trading volume of $3.34 billion on the same day. On the Ethereum front, Ethereum ETFs continued their impressive streak, attracting $65.14 million in net inflows on July 28, extending their run to 17 consecutive days. BlackRock’s ETHA stood out with a $131.95 million inflow, bringing its net assets to $11.22 billion and highlighting the increasing institutional confidence in Ethereum-based products.
The confidence in Ethereum is not just a result of short-term market dynamics. Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet, pointed to broader structural changes in Ethereum’s performance. He highlighted Ethereum’s recent surge of over 60% and its outperformance compared to Bitcoin. Elkaleh mentioned that the ETH/BTC ratio has broken above its 200-day average for the first time in over a year and formed a daily golden cross, signaling a sustained trend reversal.
Jeffrey Hu, Head of Investment Research at HashKey Capital, echoed Elkaleh’s sentiments, stating that Ethereum’s recent rally is driven by various factors indicating a fundamental shift in narrative and institutional adoption. Hu emphasized the increasing regulatory clarity in the US as a key driver for capital rotation into the altcoin market. He also noted a significant increase in corporate accumulation of Ethereum, with companies like SharpLink Gaming becoming substantial holders of ether.
Overall, Ethereum ETFs now manage $21.5 billion in assets, accounting for 4.7% of Ethereum’s market cap. Daily trading volumes for Ethereum ETFs totaled $1.91 billion, with support from VanEck’s EFUT and Grayscale’s ETHE. While Bitcoin ETFs remain strong, with assets under management totaling $87.19 billion, the inflow momentum has clearly shifted in favor of Ethereum. With increasing clarity, rising staking rewards, and growing institutional participation, Ethereum is being positioned as a foundational layer for the next crypto cycle.
In conclusion, the surge in investor interest in crypto ETFs, particularly in Bitcoin and Ethereum, reflects a growing confidence in the future of digital assets. The market dynamics and institutional adoption of these ETFs signal a positive outlook for the crypto industry as a whole.