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Crypto inflows have maintained momentum, reaching $1.03 billion last week, with Bitcoin and Ethereum leading the charge amid cautious investor sentiment.
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Ethereum continues to outperform Bitcoin in terms of investor interest, buoyed by staking upgrades, ETF inflows, and regulatory clarity that enhance its market appeal.
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According to CoinShares, Ethereum’s weekly inflows average 1.6% of assets under management, double that of Bitcoin’s 0.8%, signaling a significant shift in market dynamics.
Crypto inflows hit $1.03B with Bitcoin dominance, while Ethereum’s rising investor sentiment driven by staking upgrades and ETFs signals strong market potential.
Crypto Inflows Surge to $1.03 Billion Last Week
Last week’s crypto inflows totaled $1.04 billion, marking the twelfth consecutive week of positive net inflows despite a slowdown from the previous week’s $2.6 billion. This sustained inflow streak underscores ongoing investor confidence in the digital asset space, even as market volatility persists.
The latest data from CoinShares reveals that assets under management (AuM) now stand at $188 billion, with the United States contributing over 98% of the inflows, amounting to $1.025 billion. Bitcoin dominated these inflows, capturing $790 million, though this represented a notable deceleration compared to the prior week’s $2.2 billion.
James Butterfill, head of research at CoinShares, attributes this moderation to heightened investor caution as Bitcoin approaches its all-time high levels. He stated, “The moderation in inflows [for Bitcoin in particular] suggests that investors are becoming more cautious as Bitcoin approaches its all-time high price levels.”
In contrast, Ethereum continues to defy broader market hesitancy, marking its 11th consecutive week of positive inflows. Ethereum’s weekly inflows average 1.6% of AuM, significantly outpacing Bitcoin’s 0.8%, indicating a robust shift in investor sentiment favoring Ethereum.
Butterfill further emphasized this trend, noting, “This [highlights] a notable shift in investor sentiment in favor of Ethereum.”
Ethereum Sentiment Lifts as Staking, Stablecoin Clarity Drive Momentum
Ethereum’s improving market outlook is driven by a convergence of key factors. Following its price recovery above $2,500, Ethereum benefits from validator upgrades that enhance staking efficiency and reduce circulating supply, strengthening its fundamental appeal.
MEXC Research highlighted Ethereum’s resilience amid geopolitical volatility, stating, “Ethereum is staging a strong comeback from the recent bout of volatility triggered by the escalating tensions in the Middle East, as investor confidence renews…tracking toward the $3,000 mark.”
Bitget Chief Analyst Ryan Lee echoed this sentiment, pointing to ETF inflows and staking improvements as catalysts pushing Ethereum toward the $3,000 psychological threshold. This aligns with bullish projections from Bitwise CIO Matt Hougan, who anticipates a significant acceleration in Ethereum ETF inflows during the second half of 2025.
Hougan tweeted,
“Flows into Ethereum ETFs are going to accelerate significantly in H2. The combination of stablecoins & stocks moving over Ethereum is an easy-to-grasp narrative for traditional investors.
ETH ETFs did $1.17 billion in flows in June. They could do $10b in H2.”
On-chain metrics further validate Ethereum’s strength, with applications built on the network generating over $26 billion in user-paid fees since inception. MEXC Research emphasized the platform’s real-world utility, noting the significant roles of Tether, Uniswap, and Circle in driving revenue and adoption.
Additionally, advancements in ETH validator technology and growing institutional adoption are enhancing staking security and network performance, particularly for infrastructure tailored to institutional investors.
Regulatory developments also favor Ethereum, especially with the GENIUS Act’s progress, which benefits Ethereum due to its integral role in supporting stablecoin infrastructure.
With geopolitical risks stabilizing and risk appetite improving, Ethereum appears well-positioned for continued gains in the near term.
As of this writing, Ethereum trades at $2,565, up 2.27% over the past 24 hours, reflecting a more than 20% increase since bottoming at $2,111 on June 22.
Conclusion
The sustained crypto inflows underscore investor confidence in digital assets, with Bitcoin maintaining dominance despite cautious sentiment near all-time highs. Meanwhile, Ethereum’s robust inflows, driven by staking enhancements, ETF momentum, and regulatory clarity, signal a potential shift in market leadership. Investors should monitor these dynamics closely as Ethereum’s evolving fundamentals may offer compelling opportunities amid a cautiously optimistic crypto landscape.
