U.S. Spot Crypto ETFs Shift Capital from Bitcoin to Ethereum in July

U.S. spot cryptocurrency exchange‑traded funds recorded a notable rotation in July 2026. Bitcoin ETFs posted a net inflow of $172.4 million for the month but ended the month with a $265 million outflow on July 31, the largest single‑day withdrawal since mid‑July. The outflow was led by BlackRock’s iShares Bitcoin Trust (IBIT), which saw $122.7 million redeemed.

In contrast, spot Ethereum ETFs attracted substantially larger inflows, ranging from $337 million to $365 million in July, overtaking Bitcoin ETFs. BlackRock’s iShares Ethereum Trust (ETHA) was a primary driver, pulling in over $5 billion in assets and leading the daily inflow of about $9 million on July 31. The shift reflects institutional investors reallocating capital toward Ethereum’s smart‑contract ecosystem and staking potential.

Separately, the U.S. Securities and Exchange Commission froze Nasdaq’s proposed cash‑settled Bitcoin options (QBTC) after a jurisdiction challenge from CME Group, highlighting ongoing regulatory disputes over crypto derivatives. Despite the freeze, Bitcoin’s price remained near $63,400, indicating limited immediate market impact.