Ethereum ETFs Cool Down After Best Month Since Last Year

Ethereum spot ETFs managed their strongest performance since October 2025 during the month of July. Investors poured a total of $365.17 million into these funds, marking a significant turnaround after investors withdrew over $1 billion combined in May and June.

The momentum stalled quickly as the month came to a close. Weekly inflows plummeted from $103.9 million to just $27.42 million by July 31. This slowdown coincided with a decline in the price of ETH, which retreated from $1,967 to $1,863 within a few days.

Macroeconomic uncertainty is largely responsible for the shift in sentiment. The Federal Reserve decided to hold interest rates steady at 3.50% to 3.75%, while signaling that further rate hikes remain on the table to combat inflation. Markets now see a 64% chance of an interest rate increase this September, which keeps pressure on riskier assets like crypto.

Whether this cooling trend persists into August remains the central focus for traders. If investors continue to play it safe, the gains seen in July could be short lived. All eyes will be on the Jackson Hole symposium in late August for clearer signals regarding the future direction of the economy.