🚀 Bitcoin ETFs Stumble as Ethereum Charges Ahead: The 2025 Crypto Power Shift

Wall Street's Bitcoin ETF experiment hits a speed bump—just as Ethereum steals the spotlight with its strongest rally in months. Traders are flipping the script, and the crypto hierarchy might never be the same.

The ETF Cold War Thaws

After months of record inflows, Bitcoin ETFs saw their first major outflow day this week. Meanwhile, Ethereum's network activity just hit a 90-day high—no coincidence.

Gas Fees vs. Institutional Flows

While Bitcoin maximalists obsess over ETF approval timelines, Ethereum's defi ecosystem quietly processed $9B in stablecoin transfers yesterday. The 'flippening' chatter is back.

Regulators Left Playing Catch-Up

The SEC still hasn't approved a spot Ethereum ETF—not that it's stopping institutions from piling into ETH futures. Another reminder that crypto markets move faster than bureaucracy.

As one hedge fund manager quipped: 'We'll trade the ETFs when they exist—until then, we're making actual money in defi.' Ouch.

$107,852 ETFs, which amounted to $4.7 billion over 15 days, came to a halt with a net outflow of $342.2 million. According to SoSoValue’s data, BlackRock’s prominent IBIT fund, previously receiving a $3.8 billion inflow, reported zero activity. Fidelity’s FBTC led the withdrawals with $172.7 million, followed by Grayscale’s GBTC with $119.5 million, Ark Invest’s ARKB with $27 million, and Bitwise’s BITB with $23 million. BRN Chief Research Analyst Valentin Fournier emphasized that while these outflows indicate a pause in institutional accumulation, they do not signal a shift in the trend.

ContentsUnexpected Outflows from Bitcoin ETFsEthereum Benefits from Bitcoin’s Pause

Unexpected Outflows from Bitcoin ETFs

Since their launch in January 2024, U.S. spot bitcoin ETFs have attracted net inflows totaling $48.63 billion, reaching a size of $128 billion. However, the strong inflow momentum observed over the last 15 days has slowed with weakening daily inflows, eventually reversing. Fournier noted that short-term investor interest has cooled and without new catalysts, Bitcoin is unlikely to surpass $110,000.

SoSoValue – Bitcoin ETFs

Despite the $119.5 million outflow from GBTC, the fund still manages one of the largest asset pools. IBIT’s cessation of flows indicates a cautious phase for the traditionally leading fund. Analysts attribute this shift in ETFs to increasing interest rate uncertainty and upcoming macroeconomic data, resulting in a temporary decline in risk appetite.

On July 1st, Bitcoin fell below the $105,500 threshold but quickly rebounded to approximately $107,800. Vincent Liu, Kronos Research CIO, mentioned that until unemployment claims and other U.S. economic indicators are clarified, a cautious market outlook will persist. The range of $105,000-$110,000 is viewed as a consolidation band providing healthy potential for upward movement.

Ethereum Benefits from Bitcoin’s Pause

Meanwhile, on Tuesday, spot Ethereum$2,453 ETFs in the U.S., launched in July 2024, recorded a net inflow of $40.7 million. BlackRock’s ETHA fund alone attracted $54.8 million. Consequently, the total net inflow for Ethereum-based investment products over three days reached $150 million, with cumulative net inflows since launch amounting to $4.3 billion.

SoSoValue – ethereum ETFs

Market experts suggest that the pause in Bitcoin may support short-term institutional interest in Ethereum.

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