July flows into cryptocurrency ETFs produced an unusual result. While BlackRock’s Ethereum-focused funds ended the tracked week with strong inflows, its main Bitcoin product faced withdrawals. Ethereum’s short-term dominance may indicate a shift in preferences among large investors.
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Ethereum benefits from growing interest in new blockchain applications
Ethereum funds from BlackRock gained a net $99.2 million over five trading days. The largest portion of capital flowed into the iShares Ethereum Trust, which recorded several significantly positive sessions. Not even a later outflow of $52.8 million could turn the overall weekly balance into negative territory.
Behind the higher interest may lie not only ETH price movements, but also growing attention paid to tokenization of real-world assets and broader use of the Ethereum network in the financial sector. Investors are thus increasingly viewing Ethereum not only as the second-largest cryptocurrency, but also as infrastructure for new digital products.
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Bitcoin ETF hit by rapid wave of withdrawals
Bitcoin fund IBIT entered the tracked period with strong inflows, but the end of the week brought a sharp reversal. Over two days, investors withdrew $414.7 million from it, and the total five-day balance ended with an outflow of $95.5 million. Compared to Ethereum funds, this created a difference of nearly $195 million.
According to data from the CoinGlass platform, we cannot yet speak of a mass departure from Bitcoin. IBIT remains significantly ahead of Ethereum products in terms of assets under management and historical inflows. The July figures rather show that institutional capital is beginning to more actively seek opportunities beyond Bitcoin. Only the coming weeks will show whether this was a brief episode or the beginning of a broader shift of interest toward Ethereum.
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