Ethereum exchange-traded funds pulled in $365 million during July, marking their biggest monthly inflow since October 2025. This surge reversed two months of heavy outflows totaling over $1 billion in May and June combined. However, the momentum waned sharply in the final days of July as inflows dropped by 74% during the last week, raising doubts about whether institutional interest will hold up in August.

ETF Flows and Price Movements

After two consecutive months of redemptions exceeding $500 million each, Ethereum ETFs staged a notable comeback. Still, the recovery lost steam quickly. Weekly inflows plunged from nearly $104 million to just $27 million in the seven days ending July 31. Ethereum’s price mirrored this pattern, climbing to almost $1,970 on July 27 its highest in almost two months before sliding back to around $1,860 by the weekend.

Other crypto ETFs also saw shifting demand. Bitcoin funds reversed three weeks of net buying, shedding $61.5 million in the same final week of July. Hyperliquid products continued their decline for a third week, losing $14.75 million, while XRP ETFs bucked the trend, adding $14.86 million and pushing total inflows beyond $1.5 billion.

Federal Reserve’s Decision Clouds Outlook

The Federal Reserve’s choice to hold interest rates steady at 3.50%-3.75% on July 29 appears to have cooled investor enthusiasm. Despite the pause, three regional Fed presidents voted for a rate hike due to inflation remaining above target. Markets are now assigning a 64% probability to a quarter-point increase in September, sustaining tightening risks that weigh on risk assets like cryptocurrencies.

Fed Chair Kevin Warsh emphasized the committee’s readiness to act if necessary, signaling ongoing caution. If investors stay risk-averse, the recent slowdown in Ethereum ETF inflows could extend, erasing July’s gains. The upcoming Jackson Hole symposium later in August may provide more clarity on the Fed’s policy path and whether Ethereum ETFs can maintain their recovery.

This content is for informational purposes and does not constitute financial advice.