In July this year, the crypto market experienced an unexpected 'capital tide.' Data shows that Ethereum (ETH) ETF products saw a net inflow of over $726 million this month, driving ETH prices to soar, with a monthly increase close to 40%. More notably, this wave of capital has not stopped at Ethereum, quietly flowing towards popular altcoins like XRP, Solana, and Dogecoin, with market rotation underway.
The force behind this round of ETH price increase is no longer retail sentiment, but solid 'institutional entry.'
$700 million in ETF capital is entering, who is buying?
According to the latest statistics, since the beginning of July, Ethereum spot and futures ETFs have attracted a total of over $730 million in net inflows, setting the highest monthly record since the launch of ETF products. This means that approximately $24 million in new capital flows into the Ethereum market daily, directly pushing up ETH spot prices.
Who is the driving force behind it? Analysis shows that the main players come from hedge funds, pension funds, and large asset management companies in North America and Europe. The regulated design of ETF products allows these traditional capitals to participate in the Ethereum market legally and at a low threshold for the first time.
ETFs attract real capital, not speculative funds. This is also the core reason why this market trend deserves attention.
ETH price surged by 40%, and 'supply tightness' continues.
Data shows that Ethereum soared from $1,970 this month, peaking close to $2,800, with an increase of 38.7%. Continuous ETF accumulation has led to a further tightening of the circulating supply of ETH in the market.
Unlike retail trading, once ETF funds are allocated, they typically hold long-term. This locking effect of funds reduces selling pressure during price increases and ensures ample buying interest, leading to a stable price trend.
A Wall Street fund manager stated: 'ETFs are a signal of structural change in the market, not a result of short-term speculation. The ETH price breaking through $3,000 is just a matter of time.'
Bigger opportunities? Capital is flowing towards altcoins.
ETH's strength brings about a 'rotation effect' in capital. Data from the past week shows that major altcoins like XRP, SOL, and DOGE have generally risen by 20% to 35%. During the phase of slowing ETH price increase, some ETF investors and following retail investors have begun to shift their attention to smaller coins with stronger explosive potential.
The logic of this round of capital rotation is clear:
Institutional ETF allocation boosts ETH prices;
Market sentiment has improved, and retail capital is entering;
ETH's price increase has slowed, and capital is overflowing to altcoins.
This opportunity similar to a 'spring for altcoins' may have quietly arrived.
Policy dividends + capital resonance, is the market far from over?
During 'Crypto Week,' three major crypto-friendly bills in the US Congress (Clarity Act, Genius Act, and Anti-CBDC Act) are being vigorously promoted. The market generally expects that once legislation is passed, the barriers for traditional financial institutions to enter will be completely broken, and digital asset allocation will become a part of mainstream investment portfolios.
Under the dual drive of policy tailwinds and the ETF capital tide, the next wave of the crypto market is likely to be jointly interpreted by ETH and mainstream altcoins.
How to seize this opportunity?
Industry insiders share three pieces of advice:
Grasp the main line of ETH: Ethereum remains the main force of market capital, with a long-term upward trend, and the current price range still has allocation value.
Focus on the rotation of mainstream altcoins: XRP, SOL, and DOGE have strong liquidity and fund acceptance, suitable for short to medium-term participation.
Closely monitor policies and ETF trends: The advancement of legislation and the flow of funds are barometers for market sentiment and price trends.
In conclusion:
Institutions are entering, policies are supportive, ETFs are continuously attracting capital, and Ethereum is entering an unprecedented 'golden phase.' The rotation of funds has begun, and opportunities for altcoins are emerging. The next explosion point in the crypto market may be born from this wave of capital flow.
What do you think? Feel free to share your views in the comments.