Ethereum just outpaced Bitcoin with $365 million in ETF inflows, but on-chain data shows the real bottom isn’t in yet
Ethereum outpaced Bitcoin in July as stronger investment-product demand and company accumulation powered its first sustained relative advance in months.
Data from CryptoSlate shows that ETH gained 19% throughout the month, climbing as high as $1,970 earlier than retreating to $1,868 as of press time. Bitcoin rose 8% over the similar interval but repeatedly failed to break the $65,000 level.
The divergence pushed the ETH/BTC ratio above 0.030 for the first time in three months earlier than it eased to 0.02962. The pair has risen greater than 10% over the previous month, reflecting Ethereum’s widening efficiency benefit.
The rebound has strengthened expectations that capital is rotating again towards Ethereum after nearly a yr of underperformance.
However, on-chain indicators stay much less conclusive, with a number of measures nonetheless wanting the ranges that accompanied earlier reversals in opposition to Bitcoin.
ETH ETF flows and treasury shopping for reinforce the transfer
Ethereum’s July advance unfold past spot markets as regulated funds attracted recent capital and derivatives merchants started rebuilding publicity.
US spot Ethereum ETFs recorded $365.17 million in web inflows throughout the month, their strongest efficiency this yr, SoSoValue data confirmed. In comparability, Bitcoin ETFs drew $172.43 million over the similar interval, their weakest month-to-month whole since launching in January 2024.
This influx marked a big turnaround for ETH-focused products, which had recorded greater than $1 billion in outflows over the previous two months.
Ethereum’s sturdy efficiency was bolstered by the launch of the Morgan Stanley Ethereum Trust, which trades below the ticker MSSE and has accumulated about $20 million in assets throughout its first days of buying and selling.
While the whole stays small in contrast with established ETH ETFs, Morgan Stanley’s distribution community provides the product entry to a big pool of advisers and wealth-management shoppers. The agency has roughly 16,000 monetary advisers overseeing about $7 trillion in shopper property.
That attain may assist MSSE draw buyers who’ve had restricted publicity to crypto-focused asset managers, whereas its low 0.14% price will increase competitors amongst present ETH merchandise.
Meanwhile, company treasury demand moved in the similar path.
BitMine, the largest company holder of Ether, elevated its holdings throughout every week of July, although its pace of accumulation slowed. Its steadiness rose from about 5.70 million ETH at the finish of June to five.79 million ETH as of July 26.
Strategy, the largest company holder of Bitcoin, made no purchases throughout the month. Instead, the Michael Saylor-led company targeted on growing its money reserves and supporting its most well-liked securities after serving as a recurring supply of Bitcoin demand earlier in the yr.
The divergence left Ethereum with continued company accumulation alongside stronger ETF inflows, whereas Bitcoin’s largest treasury purchaser made no new purchases.
Valuation metrics sign July’s rally lacks historic bottoming signatures
While July injected much-needed momentum into Ethereum, the asset has not yet triggered the structural alerts that traditionally preceded a sturdy cycle reversal in opposition to Bitcoin.
Data from TradingView shows that the ETH/BTC ratio stays 13% decrease this yr and about 73% beneath a 2017 high of 0.11.
This implies that its stabilization close to 0.02963 has halted the decline from a multiyear low of roughly 0.028, but has accomplished little to restore Ethereum’s broader lack of worth relative to Bitcoin.
That distance from earlier highs shows the scale of Ethereum’s underperformance, although value alone can’t set up whether or not the decline has run its course. CryptoQuant’s valuation and exchange-flow indicators supply a clearer check by evaluating present situations with these recorded earlier than earlier ETH/BTC reversals.
The ETH/BTC market-value-to-realized-value ratio has fallen to 0.65 from 0.95 in August 2025, displaying that a lot of the premium that preceded Ethereum’s decline has dissipated.
Previous structural bottoms, together with these recorded in 2019 and early 2025, emerged solely after the measure dropped beneath 0.45.
Ethereum has subsequently moved away from the overvaluation that marked final yr’s peak with out reaching the deeper compression related with earlier turning factors.
Exchange flows present the similar incomplete adjustment. The ratio of ETH to Bitcoin deposits on buying and selling platforms has fallen from above 1.5 final August to about 0.8, indicating that relative promoting stress has eased sharply.
Earlier ETH/BTC reversals fashioned when the ratio approached 0.4. The present studying means that the heaviest distribution has subsided, whereas promoting exercise stays above the ranges seen when earlier declines reached exhaustion.
For July’s momentum to develop right into a broader reversal, ETH/BTC would want to ascertain help above 0.030 whereas valuation and alternate flows proceed transferring towards their historic bottoming ranges.
Until then, the data factors to a restoration from depressed ranges moderately than a confirmed cyclical ground in opposition to Bitcoin.
The submit Ethereum just outpaced Bitcoin with $365 million in ETF inflows, but on-chain data shows the real bottom isn’t in yet appeared first on CryptoSlate.
