Ethereum ETFs Gain Momentum as Bitcoin Faces Outflows

Ethereum spot ETFs saw $70.5M in inflows while Bitcoin funds faced $85M in outflows. Discover how institutional capital is rotating across the crypto market.

The total market capitalization of the cryptocurrency sector rose by over 1.3%, reaching approximately $2.17 trillion, while the CoinMarketCap 20 index added more than 1% over the last 24 hours.

Bitcoin is currently holding steady around the $63,000 level, and Ethereum is trading near $1,750. Most leading cryptocurrencies are in the green today, reflecting a broader market recovery.

Despite these gains, market sentiment remains cautious. The Fear and Greed Index stays within the “Fear” zone at 28 points, and the Altcoin Season indicator remains below the 50-point threshold. This suggests that investors still lean toward exposure in the primary cryptocurrency rather than smaller assets.

Ethereum Attracts Capital as Bitcoin Loses Momentum

The most significant divergence during the day emerged within the ETF market. According to FarSide Investors, spot BTC ETFs recorded a net outflow of nearly $85 million on July 8. BlackRock’s IBIT fund faced the heaviest pressure with a $59 million outflow. Additional exits were noted in products from Fidelity and Grayscale, although Grayscale’s BTC fund managed to attract roughly $53 million in fresh capital.

The contrast was even sharper for ETH. Spot ETFs for the second-largest cryptocurrency pulled in approximately $70.5 million in net new investments, primarily driven by Fidelity’s FETH fund, which saw nearly $69 million in inflows. This marks the strongest daily inflow since the beginning of July, indicating that institutional investors are gradually increasing their Ethereum exposure despite higher volatility.

Market participants view these movements as a sign of capital diversification rather than concentration solely in Bitcoin.

This type of rotation is frequently observed during recovery phases, as investors begin searching for higher yields outside of the largest cryptocurrency.

Alternative Assets Remain Under Pressure

Data for other ETF products presented a more mixed outlook. Solana ETFs saw a net outflow of about $8.6 million following withdrawals from Bitwise and Grayscale funds. Nevertheless, the price of SOL remained relatively stable, suggesting that institutional selling was offset by spot market buying.

Hyperliquid ETFs recorded a modest net inflow of $3.3 million, whereas the situation for XRP was less favorable. Data from Coinglass shows that spot XRP ETFs registered a net outflow of approximately $7.3 million, entirely due to sales within the Bitwise fund.

Despite these varied institutional flows, price action remained resilient. Ethereum climbed nearly 1% over the last 24 hours, BNB added 1.7%, XRP rose by about 1.3%, and Dogecoin was among the top performers with a gain of nearly 2%.

Investors continue to monitor institutional flows closely, as they remain a reliable indicator of major market player sentiment. For now, the price recovery suggests that short-term ETF outflows have failed to dampen the positive momentum, which is supported by stabilizing macroeconomic expectations and a potential return of risk appetite.