Ethereum Soars 56% in July: ETF Inflows Crush Bitcoin in Historic Rally
Ethereum has stunned the crypto world with a jaw-dropping 56% price surge in July 2025, leaving Bitcoin in the dust when it comes to ETF inflows. This remarkable performance marks Ethereum’s strongest monthly gain since July 2022, catapulting from $2,468 to $3,862 in just three weeks. But what’s driving this explosive growth, and is it sustainable? Let’s dive into the numbers and trends behind this historic rally.
Ethereum ETF Inflows Shatter Records
The real story behind Ethereum’s surge lies in the unprecedented demand for ETH-based ETFs. U.S. spot-ETH ETFs recorded:
- 19 consecutive days of net inflows
- $5.37 billion total inflows in July
- $727 million single-day record on July 16
BlackRock’s iShares Ethereum ETF (ETHA) doubled its assets from $5 billion to $10 billion in just ten trading days – a feat analyst Eric Balchunas called “the ETF equivalent of a God candle.”
Ethereum Outpaces Bitcoin in Institutional Demand
For six straight days in July, Ethereum ETFs attracted more capital than Bitcoin products:
| Date | Ethereum ETF Inflows | Bitcoin ETF Inflows |
|---|---|---|
| July 24 | $231.2M | $226.6M |
| 6-day total | $2.4B | $827.6M |
This represents a seismic shift in institutional interest, with Ethereum products now commanding more attention than Bitcoin in the ETF space.
DeFi Growth Fuels Ethereum’s Rally
Analysts point to several key factors driving Ethereum’s surge:
- Accelerating adoption of decentralized finance (DeFi) applications
- Underweight ETH positions in institutional portfolios
- Potential for $7-8B more inflows to match market cap
Bitwise CIO Matt Hougan notes Ethereum remains significantly under-represented in ETF portfolios compared to its market position.
Caution Signs Amid the Euphoria
While the price action is impressive, some metrics raise questions:
- Chain activity grew just 5% month-over-month
- Protocol fees increased only 3%
- Annualized blockchain revenue at $764M seems low for $466B market cap
This suggests speculative demand may be outpacing fundamental growth, echoing concerns from the dot-com era.
FAQs About Ethereum’s July Surge
Q: How does Ethereum’s performance compare to Bitcoin in July?
A: Ethereum gained 56% while Bitcoin rose 10-12%, though Bitcoin maintains a larger overall market cap ($2.2T vs $466B).
Q: What percentage of Ethereum holders are currently profitable?
A: Over 94% of ETH holders were in profit as of late July 2025.
Q: How much Ethereum is currently staked?
A: Nearly 28% of ETH supply is staked and locked up, potentially tightening liquidity.
Q: Are Ethereum’s gains sustainable?
A: While the growth is impressive, analysts caution that rapid gains often lead to corrections, similar to 1990s tech stocks.
