Ethereum Leads Investor Sentiment, Bitcoin Sees Slower Inflows

Crypto inflows continue to extend their multi-week streak, with Bitcoin (BTC) and Ethereum (ETH) still leading despite broader market caution.

However, Ethereum remains an outlier, demonstrating significantly higher investor interest or sentiment than Bitcoin.

Crypto Inflows Surge to $1.03 Billion Last Week

Crypto inflows hit $1.04 billion last week, and while this was significantly lower than the $2.6 billion crypto inflows for the week ending June 28, it marks the 12th straight week of positive flows.

The latest CoinShares report indicates that last week’s crypto inflows pushed assets under management (AuM) to $188 billion. The US accounted for most of these flows, recording over 98% with $1.025 billion.

More closely, Bitcoin accounted for the lion’s share, recording $790 million out of the $1.042 billion crypto inflows last week. Notably, this was a notable slowdown compared to the week before, where inflows into Bitcoin reached $2.2 billion.

James Butterfill, head of research at CoinShares, ascribes this to investor caution, which is likely delaying Bitcoin’s climb to a potential new all-time high.

“The moderation in inflows [for Bitcoin in particular] suggests that investors are becoming more cautious as Bitcoin approaches its all-time high price levels,” wrote Butterfill.

Meanwhile, Ethereum remains an outlier, marking its 11th consecutive week of positive flows. On a proportional basis, weekly crypto inflows for Ethereum have averaged 1.6% of AuM, significantly higher than Bitcoin’s 0.8%.

“This [highlights] a notable shift in investor sentiment in favor of Ethereum,” Butterfil added.

Ethereum Sentiment Lifts as Staking, Stablecoin Clarity Drive Momentum

Analysts ascribe Ethereum’s improving sentiment to the convergence of several catalysts. After Ethereum’s price recently reclaimed above $2,500, analysts cite validator upgrades improving staking efficiency and reducing supply.

“Ethereum is staging a strong comeback from the recent bout of volatility triggered by the escalating tensions in the Middle East, as investor confidence renews…tracking toward the $3,000 mark,” MEXC Research observed in a statement to BeInCrypto.

Similarly, Bitget Chief Analyst Ryan Lee noted Ethereum price pulling toward the $3,000 psychological level, citing ETF inflows, staking upgrades, and reduced supply. This aligns with bullish forecasts from Bitwise CIO Matt Hougan, who predicted an explosive H2 2025 for Ethereum ETFs.

Meanwhile, on-chain fundamentals remain strong, with applications built on Ethereum generating over $26 billion in user-paid fees since inception, the MEXC Research added.

“…a testament to the platform’s real-world utility and revenue-generating power, with Tether, Uniswap, and Circle all playing a big part in this milestone. The improvement in ETH validators’ technology and its growing adoption are also bolstering the ETH network’s staking security and performance, especially for institutional-focused infrastructure,” the MEXC Research noted.

Regulatory clarity is another tailwind, with the recent movement regarding the GENIUS Act, with Ethereum benefitting due to “its role in supporting the stablecoin infrastructure.”

With risk appetite improving and geopolitical risks stabilizing, ETH looks well-positioned for further gains in the coming weeks. 

As of this writing, Ethereum was trading for $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.