Investors in cryptocurrency exchange-traded funds (ETFs) started the week with confident purchases and ended it with a mass market exit. The reversal was sharp but not strong enough to completely negate the early gains of funds investing in Bitcoin and Ethereum.
From July 20 to 24, U.S. spot Bitcoin ETFs attracted $33.79 million in net inflows. Ethereum funds attracted $103.90 million, roughly three times the total amount for Bitcoin. $XRP ETFs attracted $8.15 million, while Solana products attracted $7.2 million.
ETFs on $HYPE went in the opposite direction, recording a net outflow of $8.61 million.
Bitcoin's Early Gains Fade
Bitcoin ETFs opened the week with three strong sessions. On Monday, these products attracted $227 million, on Tuesday $203 million, and on Wednesday $69 million, extending the inflow streak that began last week.
On Thursday, the trend changed: an outflow of $225 million was recorded. Another $240 million left the funds on Friday, reducing the total weekly inflow to just under $34 million.
BlackRock's IBIT fund ended the week with a net outflow of $95.5 million, while Grayscale's GBTC fund lost $83.7 million. WisdomTree's BTCW and Franklin Templeton's EZBC funds also recorded outflows of $5.1 million and $5.6 million, respectively.
The ARK 21Shares ARKB fund led the leaders with an inflow of $78.1 million. Grayscale's Bitcoin Mini Trust fund attracted $85.8 million, and Fidelity's FBTC fund attracted $35.2 million. Morgan Stanley's MSBT fund attracted $15.7 million, and Bitwise's BITB fund attracted $7.2 million.
The weekly inflow into Bitcoin funds decreased by approximately 55% compared to $75.67 million last week. Against the backdrop of total assets under management of $77.82 billion, these inflows amounted to only about 0.04% of the total assets.
Ethereum Leads as Altcoin Investors Become More Selective
Ethereum ETFs showed stronger weekly results. On Monday, they recorded an inflow of $38 million, on Tuesday $37 million, on Wednesday $73 million, and on Thursday $26 million.
These results indicate that institutional demand remains concentrated on Ethereum. Its appeal extends beyond price exposure and is linked to activity in stablecoins, decentralized finance, on-chain settlements, and corporate treasury strategies.
Inflows into altcoin ETFs were more modest. $XRP funds attracted $2.49 million on Monday and $5.66 million on Tuesday, ending the week at $8.15 million. Solana ETFs attracted $2.64 million and $5.83 million in the first two trading days, then lost $1.27 million on Wednesday. No further inflows followed.
$HYPE funds continued to struggle. After a quiet Monday, they lost about $698,000 on Tuesday, $1.02 million on Thursday, and $6.89 million on Friday.
The week's two-phase dynamic reflected broader shifts in risk appetite. Early demand for cryptocurrency was replaced by caution, as technology company reports renewed concerns about AI spending, and rising oil prices exacerbated risks related to inflation and bond yields.
The rise of ETFs is also changing cryptocurrency trading itself. Bloomberg ETF analyst Eric Balchunas argues that low-cost funds threaten high-margin intermediaries, as investors can access cryptocurrencies through ETFs for just a few basis points. For traditional exchanges, the competitive pressure is no longer theoretical.
