Ethereum Spot ETFs Hit $365M July Record Before Fed Rate Hold Chills Demand
Ethereum spot ETFs capped July with $365 million in net inflows, reversing two consecutive months of severe redemptions. However, institutional buying fell 74% in the final week after the Federal Reserve kept rates steady and teased further tightening. With macro headwinds mounting, traders are questioning whether July was a true structural turnaround or just a temporary relief bounce.
Institutional investors poured $365 million into Ethereum spot ETFs throughout July, marking the sector's strongest monthly performance in nine months. The massive influx provided much-needed relief after back-to-back redemptions drained over one billion dollars from Ether funds in May and June.
That momentum hit a brick wall in the final week of July. Weekly inflows collapsed by 74 percent to just twenty-seven million dollars as price action stalled below two thousand dollars. Bitcoin funds also felt the chill, snapping a three-week buying streak with sixty-one million dollars in net outflows.
The sudden retreat aligns directly with macro pressure from Washington. A hawkish Federal Reserve rate hold, coupled with three dissents pushing for immediate hikes, pushed September tightening odds to 64 percent. Institutional liquidity is hitting the pause button ahead of late August's Jackson Hole symposium.