Cryptocurrency investment products attracted nearly $2 billion in new inflows last week, with Ether-based funds taking the lead in one of the strongest weeks for altcoin-related exchange-traded products in 2025 so far. While Bitcoin saw minor outflows, the broader market trend remained firmly positive, extending the inflow streak to 15 consecutive weeks.
According to a July 28 report from European digital asset manager CoinShares, global crypto ETPs brought in $1.9 billion in net inflows during the week ending July 26. This surge occurred despite sharp midweek price volatility, including a brief drop in Bitcoin below $115,000 and Ethereum falling under $3,600.
The report highlights not only Ethereum’s growing institutional appeal but also a shift in investor sentiment - potentially driven by expectations of upcoming altcoin ETF approvals in the United States, rather than a traditional altcoin season. Ether was the clear standout last week, attracting $1.59 billion in inflows into its ETPs. According to James Butterfill, head of research at CoinShares, this marks the second-largest weekly inflow into Ether investment products ever recorded.
The influx underscores the rising institutional interest in Ethereum, particularly amid the growing momentum around spot ETH ETFs. Several asset managers, including BlackRock, Fidelity, and VanEck, are waiting for final approval from the U.S. Securities and Exchange Commission to launch spot Ethereum ETFs - a move widely expected to materialize by Q3 2025.
“This is a clear reflection of investor optimism around Ether ETF approvals and Ethereum’s role in the next phase of digital asset adoption,” Butterfill commented.
Solana and XRP Also See Large Gains as Altcoin Interest Builds
Following Ethereum, Solana ETPs saw inflows of $311.5 million, while XRP (XRP) products attracted $189.6 million - both significant increases that suggest growing institutional allocation to Layer 1 protocols beyond Bitcoin and Ethereum.
These inflows come amid improved sentiment toward Solana, which has rebounded strongly in 2025 following technical fixes and ecosystem expansion, and XRP, which has been buoyed by regulatory clarity in some jurisdictions and stable institutional adoption.
Notably, these gains contrast sharply with declining flows in Bitcoin-based products and suggest a targeted shift in investor interest, rather than a broad-based speculative rally across all altcoins.
Bitcoin Funds Post $175 Million Outflows, Breaking 12-Day Inflow Streak
While the overall crypto fund market was buoyant, Bitcoin investment products experienced $175 million in outflows, ending a nearly two-week streak of uninterrupted inflows.
This marks a cooling of investor appetite for BTC after months of strong accumulation, particularly in spot Bitcoin ETFs approved earlier this year. The outflows also coincide with a drop in BTC price to $115,000, marking a 3-week low and fueling profit-taking sentiment.
Still, Butterfill downplayed the significance of the outflows, suggesting that institutional Bitcoin demand remains strong over the long term.
“The recent Bitcoin pullback is more of a pause than a reversal. Many investors appear to be rotating into altcoins ahead of potential ETF launches,” he explained.
Total Crypto AUM Hits Record $221.4 Billion, Driven by Altcoin Interest
With last week’s strong inflows, the year-to-date (YTD) net inflows for crypto ETPs reached $29.5 billion, while total assets under management in crypto investment products climbed to a record $221.4 billion. That’s the highest AUM ever recorded for crypto ETPs, and a sign of deepening institutional involvement in digital assets.
Moreover, month-to-date (MTD) inflows for July stand at $11.2 billion, breaking the previous record of $7.6 billion set in December 2024 following the U.S. presidential election and rising political support for crypto-friendly policies.
These figures point to a rapidly maturing crypto investment market, where regulated products like ETPs are increasingly favored by traditional financial institutions and asset managers looking for exposure to digital assets within compliant structures.
Altcoin ETF Anticipation vs. Altcoin Season
While the spike in Ethereum, Solana, and XRP flows may seem like the beginning of a broader altcoin season, Butterfill argues that the data suggests a more targeted narrative: the anticipation of U.S.-listed altcoin ETFs.
“These inflows appear more related to forward-looking positioning ahead of ETF approvals rather than organic market-wide enthusiasm,” he said.
This view is supported by the fact that other altcoin ETPs, such as those tied to Litecoin and Bitcoin Cash , saw modest outflows of $1.2 million and $0.7 million, respectively. These assets lack the same level of institutional momentum or forthcoming ETF interest, indicating selective investment behavior.
SEC Altcoin ETF Decisions Loom
The U.S. Securities and Exchange Commission is expected to deliver rulings on multiple spot altcoin ETF applications in the coming months. The agency’s approval of spot Bitcoin ETFs earlier in 2025 set a precedent that analysts believe will likely extend to Ethereum and potentially a small group of large-cap altcoins.
Ethereum ETF filings from BlackRock, Fidelity, Grayscale, VanEck, and others are awaiting final decisions, with speculation intensifying that August or September could bring multiple approvals. Some investment firms have also filed for Solana and XRP ETPs, although the regulatory pathway for those assets may face additional hurdles due to their ongoing legal status.
Still, the sheer scale of inflows suggests that the market is increasingly pricing in success for at least Ethereum’s ETF products.
Final thoughts
The broader implication of these fund flows is a market increasingly driven by regulated vehicles, institutional access, and ETF speculation - rather than the retail-driven euphoria that defined past bull cycles.
As long as ETF speculation continues to drive allocations, Ethereum and a handful of select altcoins may outperform Bitcoin in the near term. However, this narrative could shift quickly if ETF approvals are delayed, denied, or fail to generate the expected inflows upon launch.
For now, the trend remains bullish - but investors should remain alert to potential short-term volatility and regulatory curveballs.