Ethereum ETFs attracted $332.18 million in net inflows on July 23, marking their fourteenth straight day of positive flows and signaling an intensifying institutional rotation from Bitcoin (CRYPTO: BTC) into Ether (CRYPTO: ETH).
What Happened: BlackRock's (NASDAQ:ETHA) led the charge with a $324.63 million single-day net inflow, contributing to a cumulative $8.9 billion since launch.
In contrast, Bitcoin spot ETFs posted net outflows of $85.9 million, extending a three-day streak of profit-taking.
According to data from SoSoValue, Ethereum ETF net assets now stand at $19.6 billion, roughly 4.57% of the asset's market capitalization.
This includes inflows from major sponsors such as Grayscale, Fidelity, VanEck, and Bitwise.
Meanwhile, Bitcoin ETFs, including BlackRock's (NASDAQ:IBIT) and Fidelity's (BATS:FBTC), recorded a cumulative $54.4 billion in net inflows, but recent sessions have seen sentiment cool.
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What Experts Are Saying: Marcin Kazmierczak, co-founder of RedStone, says this inflow streak into Ethereum reflects "growing confidence in Ethereum's utility beyond just a store of value."
He noted over $2.1 billion in weekly inflows and a record $726 million surge on July 16, framing the shift as tactical rebalancing from Bitcoin, which recently saw 20% monthly gains, to Ethereum, which rallied over 50%.
Bitfinex analysts added that Ethereum's unique yield-bearing features, particularly post-upgrade staking, are drawing attention from small-cap corporate treasuries.
"This could redefine how such companies are valued," they noted, suggesting a shift toward ETH as a proxy asset.
However, they warned that smaller firms may face greater risk due to volatility, regulatory uncertainty, and financial reporting challenges tied to crypto holdings.
Iliya Kalchev, analyst at Nexo Dispatch, framed the ETF flows within a broader macro and market context.
"Bitcoin held firm above $118,000 in a choppy session, even as momentum slowed," he said.
Despite selective pullbacks, the total crypto market cap remains elevated at $3.84 trillion.
"Institutional flows and macro cues are playing a bigger role in shaping sentiment," Kalchev added, pointing to the upcoming Federal Reserve meeting and White House crypto policy report as key catalysts.
Ethereum dropped 4% on the day to $3,550 but maintained momentum in ETF markets.
"ETH futures now account for 38% of aggregate open interest — their highest level since April 2023," Kalchev noted.
He also flagged improving trade sentiment, earnings divergence in equities, and rate decisions in the U.S. and Japan as macro drivers that could impact digital asset flows in the days ahead.
With institutional appetite rising and structural adoption accelerating, Ethereum's liquidity, yield mechanics, and increasing derivatives footprint appear to be cementing its status as the next major allocation after Bitcoin.
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