Institutional Appetite for Crypto ETFs Remains Limited

Analysts have pointed to multiday inflows into US-listed crypto exchange-traded funds as evidence of institutional demand. However, a closer look reveals a different story.

Data from SoSoValue shows that Bitcoin spot ETFs have only pulled in $205 million in net inflows for July, the lowest monthly total on record. This is a far cry from May and June, when $2.43 billion and $4.52 billion respectively exited these funds.

Ether has fared somewhat better, with ETH ETFs attracting $342.85 million in July. This is nearly as much as they did in April, and outperforms Bitcoin and other crypto funds. XRP, on the other hand, is set for its fourth consecutive month of inflows, but at a paltry $13.61 million.

Experts believe that Ether's stronger performance may be related to its price movement against Bitcoin. The Binance-listed ether-bitcoin pair has surged by 11% this month. Meanwhile, the Fed's recent decision not to raise interest rates could have implications for volatility in the market.