Spot ETH ETFs surpass Bitcoin for first time as July inflows hit record highs

The Spot ETH ETF market is surging into the global spotlight after July inflows into Ethereum-based exchange-traded funds outpaced those of Bitcoin ETFs for the first time.

Institutional investors funneled more than $150 million into ETH products during the month, signaling a landmark shift in demand and cementing Ethereum’s role as a frontrunner in the digital asset investment landscape.

“Ethereum’s ETF story is one of resilience and institutional confidence,” noted James Butterfill, Head of Research at CoinSharest Red ew. “The Spot ETH ETF has gone from a slow start to becoming the preferred choice for risk-adjusted exposure.”

Corporate appetite for spot ETH ETF growth

Corporate inflows are fueling the ETH ETF momentum. Big firms are “buying the dip” aggressively, with notable contributions from institutional players like BitMine, whose massive commitments in July helped accelerate the trend.

This growing appetite indicates that corporations view Ethereum as more than a speculative bet.

Instead, the Spot ETH ETF is now seen as a gateway into decentralized finance, tokenization, and enterprise blockchain use cases.

According to Bloomberg Intelligence, Spot ETH ETF volumes have expanded into new market niches, with pensions and family offices joining hedge funds in the buying spree.

The latest surge in demand highlights how institutional players are shaping the future of Ethereum-linked products.

Large asset managers and corporate treasuries are expanding their allocations, signaling confidence in the network’s long-term value proposition.

By doing so, they reinforce market stability while positioning the ETH ETF as a key instrument in bridging traditional finance with blockchain adoption.

Ethereum cries ETF “end of the month”

July’s rally prompted two senior Bloomberg analysts, Eric Balchunas and James Seyffart, to award Ethereum-based ETFs their coveted “ETF of the Month” title.

“Ethereum ETFs are no longer playing second fiddle to Bitcoin,” said Eric Balchunas, loETF analyst at Bloomberg. “For the first time, we’re seeing institutions treat ETH ETF products as primary exposure to the crypto sector.”

This marks a sharp reversal from earlier in the year, when Bitcoin ETFs dominated headlines with their sheer market presence. Now, analysts argue it’s Bitcoin’s turn to “catch up.”

Several dynamics are driving Spot ETH ETF dominance:

• Institutional Confidence: Ethereum’s pivot to proof-of-stake has lowered its environmental footprint, making Spot ETH ETF products more ESG-friendly.

• Broader Utility: ETH underpins DeFi, NFTs, and tokenization initiatives, giving ETFs exposure beyond just a store of value.

• Market Positioning: Corporates are betting that Ethereum will benefit more than Bitcoin from regulatory clarity in the coming quarters.

“Ethereum ETFs are benefiting from their wider narrative,” explained Matt Hougan, CIO at Bitwise Asset Management. “A Spot ETH ETF is not just about price—it’s about the future of financial infrastructure.”

Can bitcoin reclaim its throne?

While Spot ETH ETF inflows are soaring, Bitcoin still commands a larger share of the overall ETF market.

Analysts caution that July’s performance may be a sign of temporary rotation rather than a permanent dethroning.

“Bitcoin ETFs remain the heavyweight,” Seyffart observed. “But the rise of Spot ETH ETF products is an undeniable signal that institutions are diversifying.”

This raises the question: will Bitcoin reclaim dominance, or has Ethereum officially entered a new era of leadership in institutional investing?

As the crypto market braces for the next wave of regulatory approvals, the Spot ETH ETFs trend will remain a key barometer of institutional sentiment.

Analysts expect inflows to continue through Q4, with potential catalysts including U.S. ETF approvals and new listings in Asia.

For investors, the message is clear: Ethereum ETFs are no longer a sideshow. The Spot ETH ETFs has emerged as a central player in global crypto finance, and July’s inflows may only be the beginning of a long-term shift.