US Crypto ETFs Pull In Record $12.8B in July as Bitcoin and Ethereum Drive Momentum

In July, US crypto ETFs brought in a record-breaking $12.8 billion in net inflows, marking their best month yet. Bloomberg's senior ETF analyst, Eric Balchunas, disclosed this milestone in a recent post . He highlighted that the pace reached an average of $600 million per day, representing about twice the usual rate.  US Crypto ETFs See Record $12.8B in Net Inflows According to Balchunas, this surge pushed the group's combined performance past that of any single ETF on the market, including the widely popular Vanguard S&P 500 ETF (VOO). Notably, every ETF in the crypto category (excluding converted trusts) pulled in new capital, showing strong and widespread investor demand. Bitcoin and Ethereum led the charge, each contributing equally to the month's total, the Bloomberg ETF expert confirmed. Balchunas described the performance as the most dominant since the Philadelphia Eagles beat the Kansas City Chiefs in the Super Bowl, adding that matching this kind of momentum won't be easy in the months ahead. For context, Bitcoin ETFs saw $6.02 billion in net inflows during July, accounting for 47% of the total $12.8 billion. This made it the third-best month for Bitcoin ETFs, behind February 2024, which brought in $6.03 billion right after their launch, and November 2024, which pulled in $6.49 billion following Donald Trump's election win.  Ethereum ETFs also contributed largely to the $12.8 billion total, posting their strongest month ever. In July, they drew $5.43 billion in net inflows, 42% of the month's total. This figure crushed the previous record of $2.08 billion set in December 2024 and showed the growing investor interest in Ethereum since ETF trading for the asset started in July 2024. Following these inflows, Bitcoin ETFs now hold $152.01 billion in assets, representing 6.56% of Bitcoin's total market cap. Meanwhile, Ethereum ETFs control $21.52 billion worth of the asset, equal to 4.77% of Ethereum's market cap. Bitcoin and Ethereum Price Performances in July Despite the massive inflows, both Bitcoin and Ethereum struggled to hold their gains toward the end of the month. For instance, Bitcoin fell from a peak of $120,000 on July 22 to close the month at $115,750. Even with that late dip, it still gained 8% over July, largely thanks to its strong start.  Meanwhile, Ethereum outperformed Bitcoin in terms of resilience, ending the month with a 48.76% gain despite similar pressure late in the month. Despite this, some investors felt the price action did not reflect the large inflows. One market participant asked Balchunas whether the lack of stronger price movement had anything to do with where the ETF purchases happen or with Ethereum's staking features.  According to Balchunas, this question comes up often. He explained that US crypto ETFs operate with a strict 1:1 backing, meaning they actually hold the exact amount of crypto they represent; no lending, no synthetic exposure. He emphasized that every dollar in these ETFs links directly to real Bitcoin or Ethereum. https://twitter.com/EricBalchunas/status/1951269175218852239 Balchunas also pointed out that Bitcoin has climbed nearly 300% since BlackRock filed for its ETF two years ago, and ETF demand has played a big role in that rise. He added that some longtime crypto holders may be selling out of frustration, now that Wall Street and government-linked institutions have embraced Bitcoin.