Ethereum ETFs Surge While Bitcoin Stalls

Ethereum is showing fresh life after a difficult year. The asset gained 19 percent in July, rising toward $1,970, while Bitcoin struggled to break past the $65,000 mark. This divergence pushed the ETH/BTC ratio above 0.030 for the first time in three months, signaling a shift in investor interest toward the second largest cryptocurrency.

Driving this momentum are US spot Ethereum ETFs, which pulled in $365 million in July. This is a sharp reversal from the previous two months when these products faced over $1 billion in outflows. Meanwhile, Bitcoin ETFs only managed $172 million in net inflows during the same period. The entry of the Morgan Stanley Ethereum Trust has further helped build interest by connecting wealth managers to the asset through lower fees.

Corporate demand is also painting a different picture for the two coins. While BitMine continued to add to its Ether stash throughout July, MicroStrategy, the primary corporate buyer of Bitcoin, made no new purchases during the month. This marks a clear change in treasury strategies compared to earlier in the year.

Despite these gains, analysts warn that the recovery is not yet a sure thing. On chain valuation metrics and exchange flow data show that Ethereum has not reached the deep levels of market exhaustion typically seen at historical cycle bottoms. Traders should watch to see if ETH can hold support above the 0.030 ratio level, as current data points to a simple recovery from low prices rather than a confirmed long term trend reversal.