Cryptocurrency investment vehicles continued their winning streak last week, recording more than $1 billion in inflows despite increased volatility across digital asset markets. According to a July 8 report by CoinShares, global crypto exchange-traded products attracted $1.03 billion for the week ending July 5, bringing total year-to-date inflows to just under $19 billion - a new historical record.
Assets under management in crypto ETPs surged to $188 billion, up from $184.4 billion the week before. The rally in inflows highlights growing investor interest in regulated crypto exposure, particularly through exchange-traded funds offered by giants like BlackRock and Fidelity.
While Bitcoin ETPs remained dominant in absolute terms, Ethereum investment products are gaining ground. Ether posted its 11th straight week of inflows, with rising market confidence suggesting that investor sentiment is gradually shifting in favor of Ethereum amid expectations of further institutional adoption.
Bitcoin ETPs continued to lead all products with $790 million in weekly inflows - roughly 76% of total crypto ETP flows. However, this figure represents a slowdown compared to the three-week average of $1.5 billion, raising questions about whether investor enthusiasm is cooling as Bitcoin nears its all-time high of $111,000.
“The moderation in inflows suggests that investors are becoming more cautious as Bitcoin approaches its all-time high price levels,” wrote CoinShares’ head of research James Butterfill. BTC’s performance continues to be influenced by macroeconomic uncertainty, including U.S. Federal Reserve policy and global liquidity shifts. Institutional investors remain the driving force behind ETP inflows, with Bitcoin ETFs in the U.S. accounting for the lion’s share of new capital.
Ethereum Gathers Institutional Steam
Ethereum ETPs attracted $225 million in new investments last week, marking the 11th consecutive week of positive flows. While this figure is significantly smaller than Bitcoin’s, the growth rate has been more impressive. Weekly inflows for Ethereum now average 1.6% of its total AUM - double that of Bitcoin’s 0.8%, according to CoinShares.
This divergence suggests a “notable shift in investor sentiment in favor of Ethereum,” Butterfill noted, as institutional allocators begin to diversify beyond Bitcoin.
The rise in Ether inflows follows the SEC’s approval of spot Ether ETFs in May 2025, a long-awaited milestone that analysts believe could open the door to broader adoption of Ethereum-based investment products.
While trading volumes and retail interest remain highest in Bitcoin, Ethereum is positioning itself as a multi-use blockchain ecosystem with appeal to investors interested in decentralized finance, staking, and tokenized real-world assets.
BlackRock Dominates ETP Issuer Flows
Among crypto ETP providers, BlackRock continued to command the largest share of investor capital. Its iShares Bitcoin Trust and Ethereum funds together attracted $436 million - representing 42% of all issuer inflows last week.
BlackRock’s dominance in the market has grown steadily since it launched its spot Bitcoin ETF in January 2024, followed by its Ethereum offering earlier this year. Fidelity, Ark 21Shares, and Grayscale also saw positive flows but trailed BlackRock in absolute terms.
The flow data signals that investors continue to favor the largest and most established asset managers when it comes to crypto exposure - particularly as concerns around custody, security, and liquidity remain top of mind for institutions.
The surge in inflows pushed total assets under management for crypto ETPs to a record $188 billion, up more than $3.5 billion from the previous week. The growth reflects both rising token prices and sustained capital inflows from institutions and high-net-worth individuals.
While the pace of inflows has moderated compared to earlier in the year - when Bitcoin ETFs were driving weekly inflows as high as $2.5 billion - the broader trend remains overwhelmingly positive.
“Institutional demand for regulated, transparent, and liquid crypto investment vehicles continues to grow,” said Butterfill. “Even as we see short-term fluctuations, the long-term allocation trend is clearly moving upward.”
What's Fueling the Shift to Ethereum?
Ethereum’s growing appeal among institutional investors can be attributed to several factors:
- Spot ETF Approval: The SEC’s greenlighting of Ether spot ETFs in Q2 2025 marked a turning point, providing regulated exposure for institutional clients that were previously limited to Bitcoin-only offerings.
- Yield-Bearing Staking: Unlike Bitcoin, Ethereum offers native staking yields, which are appealing in a low-interest-rate environment. Many Ether ETPs are now exploring “yield-bearing” structures that pass on staking rewards to investors, further enhancing returns.
- Real-World Use Cases: Ethereum’s role as the leading network for smart contracts, tokenization of real-world assets, and DeFi protocols positions it as more than a store of value - giving it a multi-dimensional investment narrative.
- Developer Activity and Upgrades: Continued innovation on the Ethereum roadmap, including improvements to scalability and Layer-2 ecosystem growth, suggests long-term utility and network resilience.
With these factors in play, analysts expect Ethereum’s share of ETP flows to rise steadily, especially as more institutional portfolios diversify into multi-asset crypto allocations.
Broader Market Dynamics
The $1 billion inflow week occurred against a backdrop of mixed macroeconomic signals. U.S. interest rate expectations remain a wildcard, and geopolitical tensions continue to affect risk sentiment globally. Yet, the steady rise in crypto ETP allocations suggests that investors are increasingly viewing digital assets as part of a diversified portfolio strategy, rather than speculative instruments.
Meanwhile, retail participation remains strong across centralized exchanges and on-chain protocols, though it plays a secondary role in driving ETP flows, which are dominated by institutional capital.
The macro backdrop is also boosting interest in alternative stores of value. As central banks in emerging markets accelerate gold and Bitcoin purchases and institutional allocators build crypto positions, digital assets are becoming harder to ignore in traditional financial circles.
While the moderation in Bitcoin inflows might signal short-term profit-taking or caution at resistance levels, the broader narrative remains supportive. Ether’s rise as a parallel allocation asset is not necessarily a rotation out of Bitcoin, but a sign of asset class maturation.
CoinShares expects continued inflows through Q3 2025, though the pace may vary depending on market volatility, Fed policy decisions, and developments in crypto regulation - particularly in the U.S. and Europe. For now, the steady climb in assets under management and multi-asset inflow breadth suggests the institutional crypto investment thesis is expanding - not contracting.