Cryptocurrency inflows continue to increase across several weeks, with Bitcoin (BTC) and Ethereum (ETH) still drawing market attention.
However, Ethereum has significantly higher investor interest and sentiment compared to Bitcoin.
Cryptocurrency Inflows Reach $1.04 Billion Last Week
Cryptocurrency inflows reached $1.04 billion last week. This is considerably lower than the $2.6 billion inflow for the week ending June 28, but it marked the 12th consecutive positive trend.
According to the latest CoinShares report, last week's cryptocurrency inflows increased Assets under Management (AUM) to $188 billion. The United States accounted for most of this, recording over 98% with $10.25 billion.
Bitcoin represented $790 million of the $1.042 billion cryptocurrency inflows last week. This marks a significant slowdown compared to the previous week, when Bitcoin inflows reached $2.2 billion.
CoinShares' Research Head James Butterfield explains this as investor caution, which is delaying Bitcoin's potential new all-time high.
"The moderation of Bitcoin inflows suggests investors are becoming more cautious as Bitcoin approaches its all-time high." – James Butterfield, CoinShares Research Head
Meanwhile, Ethereum is showing an exceptional trend, recording positive flows for 11 consecutive weeks. In percentage terms, Ethereum's weekly cryptocurrency inflows average 1.6% of AUM, significantly higher than Bitcoin's 0.8%.
"This highlights a notable shift in investor sentiment favoring Ethereum." – James Butterfield, CoinShares Research Head
Ethereum's Rise Driven by Staking and Stablecoin Clarity
Analysts explain that the convergence of multiple catalysts has contributed to improving Ethereum's sentiment. After Ethereum's price recovered to $2,500, analysts note that validator upgrades have improved staking efficiency and reduced supply.
"Ethereum is showing a strong recovery from recent volatility due to Middle Eastern tensions, and with investor confidence restored, it is moving towards $3,000." – MEXC Research
Similarly, Bitget's Chief Analyst Ryan Lee mentioned Ethereum's price being pulled towards the psychological level of $3,000, pointing to ETF inflows, staking upgrades, and supply reduction. This aligns with BitWise CIO Matt Hougan's prediction of explosive Ethereum ETF growth in H2 2025.
Flows into Ethereum ETFs are going to accelerate significantly in H2. The combination of stablecoins & stocks moving over Ethereum is an easy-to-grasp narrative for traditional investors.
— Matt Hougan (@Matt_Hougan) July 2, 2025
ETH ETFs did $1.17. billion in flows in June. They could do $10b in H2. https://t.co/PUwFK8qKcV
Meanwhile, on-chain fundamentals remain strong, with applications built on Ethereum generating over $26 billion in user payment fees since inception, according to MEXC Research.
"...proving the platform's real-world utility and revenue-generating capacity, with Tether, Uniswap, and Circle playing significant roles. Improvements in ETH validator technology and increased adoption are particularly enhancing ETH network staking security and performance in institution-focused infrastructure." – MEXC Research
Regulatory clarity is another positive factor, with recent movements related to the GENIUS Act benefiting Ethereum due to its "support role in stablecoin infrastructure".
With improved risk appetite and stabilizing geopolitical risks, ETH is well-positioned for potential further increases in the coming weeks.
At the time of writing, Ethereum is trading at $2,565, up 2.27% in the last 24 hours. This represents a surge of over 20% since bottoming out at $2,111 on June 22.
