Spot Ethereum ETFs pulled in $365 million in July, more than double the $205 million spot Bitcoin ETFs attracted. The reversal follows an eight-week Bitcoin ETF outflow streak topping $8 billion, and it coincides with new staking-yield products that Bitcoin ETFs cannot match.
Spot Ethereum ETFs recorded $365 million in net inflows in July, their strongest month since launching in July 2024. Spot Bitcoin ETFs took in just $205 million over the same period, the lowest monthly total in the product's history. It is the first time Ethereum ETFs have out-earned Bitcoin ETFs.
Bitcoin ETFs lost their bid first
The disparity followed Bitcoin ETF outflows of $2.43 billion in May and approximately $4.5 billion in June, an eight-week streak that totaled more than $8 billion in redemptions. That marked the first negative half year for spot Bitcoin ETFs since their January 2024 debut. Bitcoin's price decline from its October 2025 peak, Strategy's shift from buyer to seller, and Treasury yields above 4% all pressured holders toward the exit.
A yield Bitcoin ETFs cannot offer
Ethereum ETFs, by contrast, gained a structural edge Bitcoin products lack: staking. BlackRock's staked Ethereum ETF (ETHB) and Grayscale's ETHE now pass staking rewards to holders alongside price exposure, a feature that did not exist before March 2026. The ETH/BTC ratio rose from its 2026 low of approximately 0.024 in May to 0.030, a 25% recovery that coincides with the flow reversal. Staked Ethereum reached a record 41.7 million ETH, roughly one third of total supply.
The deeper case rests on stablecoins rather than yield alone. Stablecoin market capitalization crossed $322 billion in June 2026, and BlackRock's 2026 Global Outlook named Ethereum the primary beneficiary of that growth. Andreessen Horowitz's Chris Dixon said publicly that stablecoins "now rival major payment networks like Visa" with $300 billion issued.
Why the rotation may not last
Ethereum is still down approximately 35% in 2026. It trades more than 50% below its 2025 peak near $5,000, at a market capitalization of $233 billion against Bitcoin's $1.3 trillion. Bitcoin ETFs, meanwhile, posted weekly inflows exceeding $750 million in the first week of August, suggesting July's reversal may reflect Bitcoin's weakness rather than a lasting shift toward Ethereum.
Source: crypto.news
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