Ethereum gains 19% as $365 million ETF inflows outpace Bitcoin

Ethereum rose 19% in July to $1,868, outpacing Bitcoin's 8% gain, as $365 million in ETF inflows powered its best month of the year.

SoSoValue data shows US spot Ethereum ETFs recorded $365.17 million in net inflows during July, their strongest monthly performance this year, while Bitcoin ETFs drew $172.43 million — their weakest since launching in January 2024.

The inflow marked a turnaround for ETH products that had recorded more than $1 billion in outflows over the preceding two months. The Morgan Stanley Ethereum Trust (MSSE), launched in July with a 0.14% fee, accumulated about $20 million in assets during its first days of trading. BitMine, the largest corporate holder of Ether, increased its balance from 5.70 million ETH at the end of June to 5.79 million ETH as of July 26. Strategy, the largest corporate holder of Bitcoin, made no purchases during the month.

The ETH/BTC ratio crossed 0.030 for the first time in three months before easing to 0.02962, but CryptoQuant's valuation and exchange-flow indicators remain above levels that accompanied previous reversals, leaving the longer-term recovery unresolved.

ETF flows and treasury buying diverge

The July advance spread beyond spot markets as regulated funds attracted fresh capital. Morgan Stanley's distribution network — roughly 16,000 financial advisers overseeing about $7 trillion in client assets — gives MSSE access to wealth-management clients who have had limited exposure to crypto-focused asset managers.

Corporate treasury demand moved in the same direction. BitMine added Ether each week of July, though its pace slowed. Strategy, the Michael Saylor-led company, focused on increasing cash reserves and supporting its preferred securities after serving as a recurring source of Bitcoin demand earlier in the year.

On-chain metrics lag price momentum

The ETH/BTC ratio remains 13% lower this year and about 73% below a 2017 high of 0.11. Its stabilization near 0.02963 halted the decline from a multiyear low of roughly 0.028 but has done little to repair Ethereum's broader loss of value relative to Bitcoin.

CryptoQuant's market-value-to-realized-value ratio for ETH/BTC has fallen to 0.65 from 0.95 in August 2025. Previous structural bottoms, including those in 2019 and early 2025, emerged only after the measure dropped below 0.45.

Exchange flows show the same incomplete adjustment. The ratio of ETH to Bitcoin deposits on trading platforms has fallen from above 1.5 last August to about 0.8. Earlier ETH/BTC reversals formed when the ratio approached 0.4.

For July's momentum to develop into a broader reversal, ETH/BTC would need to establish support above 0.030 while valuation and exchange flows continue moving toward their historical bottoming ranges. Until then, the data points to a recovery from depressed levels rather than a confirmed cyclical floor against Bitcoin.

This article is for informational purposes only and does not constitute investment advice.