On Monday, a net outflow of $131.35 million marked the end of a 12-day streak of inflows for spot Bitcoin 
$82,774 ETFs, contrasting with a $296.6 million inflow for Ethereum 
$2,482 ETFs that same day. According to SoSoValue data, Ark & 21Shares’ ARKB fund accounted for the largest Bitcoin ETF outflow of $77.46 million. Major outflows were also reported from ETFs managed by Grayscale, Fidelity, Bitwise, and VanEck. Additionally, BlackRock’s IBIT, among others, recorded a neutral flow. In a contrasting trend, Fidelity’s Ethereum ETF (FETH) welcomed a significant $126.93 million, while BlackRock’s ETHA saw a $102 million inflow.
Shift in Bitcoin and Ethereum ETF Trends
Data from SoSoValue reflects a shift, showing that spot Bitcoin ETFs, which had attracted $6.12 billion in net inflows since July 1, turned negative on July 21. This negative turn was driven by neutral flows in IBIT and concurrent withdrawals from other major funds.
Conversely, the trend for Ethereum was favorable, with spot Ethereum ETFs experiencing one of their most robust inflow streaks since launch, totaling $3.53 billion over 12 days. On several occasions, Ethereum outperformed Bitcoin on a daily basis, driven primarily by Fidelity and BlackRock. Additional positive flows were recorded by Grayscale Mini Ethereum Trust and Bitwise ETHW.
Could Capital Rotation Trigger a Broad Altcoin Season?
Min Jung, an analyst at Presto Research, commented that the ETF flows mirror a familiar rotation from Bitcoin to Ethereum. Jung suggests that investors who believe they missed the major Bitcoin rally are now turning their attention to Ethereum, the “king” of altcoins. He interprets the 5% reduction in Bitcoin’s market dominance in the past week as a sign of a downward shift in the risk curve.
The current market rally is predominantly driven by institutional capital. Jung notes that whether this shift will extend beyond large-cap altcoins remains uncertain, indicating the potential for a different scenario in this cycle.
