Funds return to Bitcoin and Ethereum ETFs; main driver of July market is “resumption of inflows” In the recent cryptocurrency market, a key focus has been the return of capital to U.S. spot Bitcoin ETFs and spot Ethereum ETFs. While both experienced consecutive outflows in early July, weakening momentum from institutional money, recent inflows have now been confirmed and are being viewed as a支撑 for current market conditions. Despite temporary large outflow days, Bitcoin ETFs ended the week with net inflows, and Ethereum ETFs similarly reversed their trend. (https://t.co/68ceHfcwKl) Particularly notable was the strong leadership from BlackRock’s IBIT. According to CoinDesk, on one trading day alone, IBIT attracted approximately $139 million in inflows, with Fidelity’s FBTC also contributing. The total assets under management across all Bitcoin ETFs have recovered to around $78 billion, while Ethereum ETFs have surpassed $10 billion. These figures suggest that investors may be reassessing the fundamental appeal of these products—not merely reacting to short-term price movements. (https://t.co/huUFIFuwBp) This reversal follows a sharp reaction to extreme outflows that persisted through June. The Block reported that for the week ending July 11, Bitcoin ETFs recorded approximately $197.4 million in inflows and Ethereum ETFs $84.4 million, halting eight consecutive weeks of outflows. However, during the prior eight weeks, a combined total of approximately $9.46 billion had been withdrawn from both ETF groups—meaning the current rebound has not yet fully offset those losses. Thus, while the recent improvement signals the initial phase of a reversal, it is too early to declare a full recovery. (https://t.co/68ceHfcwKl) On the Ethereum side, the return of ETF inflows is further supported by growing real-world demand. CoinDesk reported that since July 1, Robinhood’s Layer 2 network has processed over $800 million in daily decentralized trading volume using Ethereum as gas fees. This surge in usage demonstrates that Ethereum is increasingly valued not only as an investment asset but also as a foundational platform for transaction fees and processing. When both ETF flows and real-world demand align, market sentiment becomes more stable. Meanwhile, the broader market is not yet leaning toward optimism. CoinDesk reported that the U.S. government transferred approximately $288 million worth of seized Bitcoin and Ethereum to Coinbase Prime—a move often interpreted as a precursor to selling or reallocation. Additionally, in DeFi, attacks exploiting oracles continue, such as the $18 million outflow from Ostium. Whether institutional flows improve alongside strengthened on-chain risk management will be a critical factor in determining the direction of the cryptocurrency market in late July. (https://t.co/UCOdd9Gzom)