Ethereum ETFs Draw $365M in July Reversal

Ethereum News

U.S. spot Ethereum (ETH) exchange-traded funds ended July with $365.17 million in net inflows, reversing an eight-week stretch of redemptions and outpacing Bitcoin funds’ $172.42 million for the month. The Ethereum fund complex turned positive during the week ending July 11 with $84.42 million, followed by $105 million the next week, according to fund-flow data. BlackRock’s iShares Ethereum Trust and its staked Ethereum product supplied much of the bid: the former added 37,424 ETH, worth about $70.1 million, during the week ending July 24 and has accumulated $11.45 billion in cumulative net inflows, while the staked fund took in $15.38 million on July 31 alone as other products bled. The staked product’s structure is distinct from liquidity provision through an automated market maker, but it still packages ETH yield. The rebound also coincided with corporate accumulation by Bitmine Immersion Technologies, led by Tom Lee. Its purchases ran through the month, including 42,197 ETH early July, 7,430 ETH during the third week and 9,946 ETH in the final week. The firm now holds roughly 5.79 million ETH, equal to 4.8% of circulating supply and about $11.2 billion at July pricing, with 85% of those tokens — approximately 4.92 million ETH — staked through its MAVAN platform. That combination of ETF demand and treasury buying gives altcoin investors a clearer institutional bid than earlier in the summer.

The July total, however, masked a sharp late-month loss of momentum that now frames the August outlook. It followed back-to-back redemptions of $540.88 million in May and $528.99 million in June, making the reversal significant. The monthly rebound was the strongest since October 2025, a marker traders compare against prior all-time high flow cycles. Weekly net inflows fell 74% to $27.42 million in the period ending July 31, down from $103.9 million the week before, as investors stepped back after the Federal Reserve held rates steady. Price action reinforced the caution: ETH reached $1,967 on July 27, its strongest level in nearly two months, before slipping to about $1,863 by Friday. The retreat was not confined to Ethereum products. Bitcoin funds recorded $61.53 million in weekly outflows, ending three consecutive weeks of net buying, while Hyperliquid-linked products lost $14.75 million for a third week. XRP funds provided a bright spot with $14.86 million in new inflows, lifting their cumulative total above $1.5 billion. That cross-product weakness suggests the pause was driven by macro positioning rather than a token-specific event. For traders, the key question is whether July’s recovery marked the beginning of a sustained institutional rotation or merely a temporary rebound before a renewed bear-market risk phase. The fund-flow data alone cannot settle that, but the speed of the slowdown makes early August readings important.

The macro backdrop explains much of the hesitation. On July 29, the Federal Reserve kept the policy rate at 3.50%-3.75% in a 9-3 vote. Three regional presidents — Beth Hammack, Neel Kashkari and Lorie Logan — backed a hike because inflation remains above target. That split leaves tightening risk active for risk assets, and markets now assign a 64% probability to a quarter-point increase in September. Fed Chair Kevin Warsh reinforced the message that policymakers are prepared to act if necessary, a stance that can weigh on duration-sensitive and liquidity-driven assets such as crypto. For Bitcoin and Ethereum, higher-for-longer conditions can reduce the marginal buyer for non-yielding spot exposure and make treasury teams more cautious about adding volatile assets. That matters because ETFs and corporate treasuries rely on liquid market conditions, and tighter financing can slow new allocations to ETH funds. The next macro catalyst is the Fed’s Jackson Hole symposium in late August, where investors will look for signals on whether September hike odds are firming or fading. If risk aversion persists, July’s ETF recovery could be partially or fully erased; if demand re-accelerates, the month’s inflow would look less like a one-off bounce and more like the start of a broader institutional re-entry.

COINOTAG’s proprietary 42-indicator composite S/R scoring engine rates Ethereum’s nearest resistance at $1,856.38 with a 76/100 score, driven by the Fibo 0.382 and EMA 20 confluence, while spot trades near $1,842. The strongest support at $1,831.59 scores 72/100, backed by BB Lower and S2. Derivatives show cautious but crowded longs: funding is -0.0004%, open interest is $7.59 billion, and the long/short account ratio stands at 2.19, with 68.6% of accounts long. Fear & Greed at 28 signals fear, while RSI at 48.36 and a bearish MACD support a sideways bias. A decisive break above $1,856 could expose $1,918, but a daily close below $1,831 invalidates the bullish setup and points to $1,785.