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Ethereum ETFs reach $1.85 billion in inflows

Ethereum's ETF inflows surged 25 times more than Bitcoin, raising investment interest.

July 26, 2025 at 05:01 PM

Ethereum ETFs see $1.85B inflows - 25x more than Bitcoin!

Ethereum surged ahead of Bitcoin with 25 times greater ETF inflows this past week.

Ethereum ETFs dominate Bitcoin inflows with $1.85 billion

In a surprising turn, Ethereum ETFs recorded net inflows of $1.85 billion from July 21 to July 25, vastly outpacing Bitcoin's $72 million. The total assets in Ethereum ETFs now surpass $20 billion, with significant contributions from BlackRock's ETHA which alone accounts for over $10 billion. Hedge funds drove many inflows by executing a basis trade strategy, buying spot Ethereum ETFs while shorting the equivalent asset on CME Futures. Despite this remarkable inflow, the price of Ethereum only slightly approached $4,000, leading analysts to consider other factors affecting market perception. The ETH to BTC ratio did not reflect the inflow surge, indicating a muted capital rotation between these two leading cryptocurrencies.

Key Takeaways

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Ethereum ETFs saw $1.85 billion in inflows, 25 times more than Bitcoin.

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Total assets in Ethereum ETFs exceed $20 billion, bolstered by major fund investments.

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Hedge funds significantly influenced Ethereum inflows through basis trades.

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CME Futures data highlights a growing interest in Ethereum over Bitcoin.

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The ETH to BTC ratio remained relatively stable despite inflow disparities.

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Spot demand from treasury firms may continue to drive Ethereum's growth.

"We think this paints a picture of a market reallocating capital in response to shifting yield opportunities."

Coinbase analysts provide insight on the demand for unstaking ETH from validators.

"The massive divergence in ETF flows barely impacted the ETH/BTC ratio, showing muted capital rotation."

Analysts observe that the inflow surge has not changed market perceptions significantly.

The disparity in inflows between Ethereum and Bitcoin suggests a shifting interest in the cryptocurrency market. Hedge funds are keen on capitalizing on trading opportunities, particularly in basis trades, which offer higher returns compared to staking. This movement might indicate that investors are increasingly looking for better yield options, rather than expressing a lack of confidence in Bitcoin. Moreover, as Ethereum nears the $4,000 mark, it will be critical to observe how market sentiment evolves alongside these trading strategies and investor behaviors.

Highlights

Ethereum's ETF inflows highlight a dramatic shift in investor behavior.
The rush to Ethereum suggests hedge funds are hunting for better yields.
BlackRock's ETHA leads the charge, crossing the $10 billion mark.
Despite inflows, ETH's price struggles to break through $4,000.

Potential political and financial risks

The significant inflow into Ethereum ETFs raises concerns over market volatility and investor sentiment towards Bitcoin. The shift in investment strategies could lead to backlash if market conditions change suddenly or if regulatory scrutiny increases on cryptocurrency investments.

Market dynamics between Ethereum and Bitcoin will continue to evolve as investor strategies shift.

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ethereum bitcoin etfs cryptocurrency hedge funds finance cryptocurrency

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