Bitcoin ETF outflows hit $131 million as Ethereum funds add $297 million

  • Bitcoin ETFs saw $131 million in outflows, ending a 12-day inflow streak.
  • Ethereum ETFs gained $297 million, driven by staking yield and regulatory momentum.
  • Portfolio rotation signals growing institutional preference for Ethereum over Bitcoin.

Bitcoin spot exchange-traded funds (ETFs) saw net outflows of $131.35 million on 21 July, marking the end of a 12-day inflow streak and highlighting a shift in investor appetite.

On the same day, Ethereum ETFs attracted $296.59 million in net inflows, extending their own 12-day run and underscoring a broader rebalancing trend in crypto portfolios.

This divergence in flows between the two largest cryptocurrencies comes amid growing institutional interest in Ethereum products, bolstered by evolving regulation and staking-related yield opportunities.

Meanwhile, Bitcoin’s recent price consolidation has prompted profit-taking and portfolio adjustments by funds nearing quarter-end reporting cycles.

Bitcoin ETF holdings fall as inflow streak halts

Following robust gains earlier this month, Bitcoin ETFs began to experience investor outflows for the first time since early July.

Data from SoSoValue showed a net outflow of $131.35 million on 21 July, ending a sustained period of $6.6 billion in cumulative net inflows.

Despite strong trading activity—$4.1 billion in daily volume—major ETFs like BlackRock’s IBIT and Fidelity’s FBTC either posted flat flows or registered minor losses.

IBIT, the largest in the segment with a net asset value (NAV) of $86.16 billion, recorded no new net inflows.

Ark Invest’s ARKB and Grayscale’s GBTC were more impacted, seeing outflows of $77.46 million and $36.75 million, respectively.

The combined assets across all US Bitcoin spot ETFs now stand at $151.6 billion, which accounts for 6.52% of Bitcoin’s total market capitalisation.

The recent downturn suggests that some institutions may be rebalancing holdings or diversifying into other crypto assets.

Ethereum ETF net assets rise to $19.6 billion

In contrast to Bitcoin, Ethereum ETFs recorded their twelfth consecutive day of net inflows on 21 July, led by heavy activity in newly launched and established funds alike.

BlackRock’s ETHA pulled in $101.98 million, while Fidelity’s FETH attracted $126.93 million.

FETH’s NAV has now reached $2.08 billion, while ETHA has posted more than $8.16 billion in total cumulative inflows.

Grayscale’s Ethereum funds saw mixed results.

While one recorded a small outflow, the other posted an inflow of $54.90 million. VanEck and Franklin Templeton also reported new capital entering their Ethereum-based products.

Combined, all Ethereum ETFs now manage $19.6 billion in net assets, representing 4.32% of Ethereum’s total market cap.

Daily trading volumes across ETH ETFs stood at $3.21 billion.

Staked Ether and pending legislation boost ETH demand

Several market analysts attribute Ethereum’s continued inflow momentum to the inclusion of staked Ether in ETF offerings, a feature not available in Bitcoin products.

This allows investors to earn yield while gaining exposure to price action, a model that appears to be resonating with institutional asset managers.

Momentum surrounding the GENIUS and CLARITY Acts in the US Congress has helped bolster Ethereum’s regulatory narrative.

The proposed laws, which are advancing toward a final vote, could enable traditional financial institutions to integrate Ethereum-backed products more easily, supporting their inclusion in diversified portfolios.

The combination of staking yield, regulatory clarity, and consistent inflows has shifted market sentiment in favour of Ethereum—at least in the short term.

The widening gap in ETF flows also reflects a growing divergence in how investors view the strategic role of each asset.

Portfolio rotation points to broader crypto strategy shift

The difference in ETF flows may signal the start of a new allocation trend within institutional crypto investment.

With Bitcoin ETFs showing signs of saturation after their recent rally, and Ethereum ETFs offering yield through staking, portfolio managers appear to be rotating capital based on utility, structure, and evolving regulation.

This shift comes at a time when both asset classes remain under close watch from US regulators and global financial markets.

While short-term fluctuations are common, the data from 21 July suggest that Ethereum is becoming more than just a secondary crypto asset—it is emerging as a standalone category within institutional investment strategies.

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Ethereum price forecast: ETH bull case remains intact despite strategic profit-taking

  • Ethereum price is at $3,640 amid some profit-taking deals.
  • Despite some whales selling, institutional interest remains high and demand is absorbing the dump.
  • Analysts say the ETH bull market remains intact.

Ethereum has retreated slightly from its highs of $3,856 as it dips nearly 4% in the past 24 hours amid some profit-taking moves.

But while the top altcoin changes hands at $3,640 at the time of writing, analysts maintain Ethereum is on a bullish course and that ETH still has room to explode.

ETH sees strategic profit taking

The $4,000 mark remains elusive for Ethereum in 2025, with the highs of $3,856 marking a key peak since the declines from $4,000 in December 2024.

It means Ethereum price has lagged as Bitcoin climbed to multiple new highs.

Selling pressure at current levels alludes to likely struggles in the short term, analysts at Glassnode have noted.

The outlook is down to the Cost Basis Distribution Heatmap of Ethereum, which Glassnode analysts say shows buyers are cashing out gains.

This strategic profit-taking is calculated towards securing profits after ETH posted strong upward moves these past weeks.

Sellers have included whales. Lookonchain shared on X that one whale has sold 8,000 ETH for over $30 million.

Ethereum price forecast: here’s why bull case remains intact

Despite the profit-taking, Glassnode highlights a fascinating scenario with equilibrium emerging.

Notably, data shows new demand is steadily absorbing the supply hitting the market, with selling pressure yet to overwhelm buyer interest.

It’s a resilient market structure for ETH that suggests pullback action is likely to dissipate as bulls take control.

While some whales sell, others have accumulated. Also, institutional holders like SharpLink Gaming have been aggressive.

The company has acquired a massive chunk of ETH in recent weeks.

Helping buyers is overall market sentiment that sees open interest in ETH futures soar to all-time highs. OI currently sits around $58 billion per Coinglass, which indicates interest is elevated.

Ethereum is also sporting gains amid staking explosion, spot ETF inflows and regulatory developments. The ETH spot ETF inflows for Ethereum reached 588,000 ETH last week – higher than recent peak.

Traders will eye potential corrections for buy opportunities, with consolidation in the near term allowing for a retest of key supply zone areas.

On the flipside, sellers may be encouraged by weakening on-balance volume and extended cashing out.

The $3,500 remains important and robust support may be around $3,000.

Yet, the RSI on the daily chart is not overextended as it hovers just below the overbought territory.

The MACD also still boasts a bullish case scenario. The $4,000 threshold is therefore one to watch.

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