Ethereum ETFs Surge in July, But Rate Hike Odds Cloud August Demand

Ethereum spot ETFs had their strongest month since October 2025, attracting $365.17 million in July. This was after two consecutive months of redemptions totaling over $1 billion.

The inflows dropped significantly in the final week of July, plummeting by 74% from $103.9 million to $27.42 million as the Federal Reserve held interest rates steady.

The pullback raises concerns about whether institutional demand will carry into August. The Federal Reserve's decision has injected caution into markets, with a 64% chance of a quarter-point hike in September priced in.