Ethereum ETF inflows in the US reached $365.17 million in July, their best monthly performance this year. 17 million in net inflows during July, marking their strongest monthly performance this year. This significantly outpaced Bitcoin ETFs, which attracted $172.43 million over the same period. While Ethereum’s price saw a notable 19% increase, on-chain indicators suggest the asset has yet to establish a definitive market bottom against Bitcoin.
The July surge for Ethereum reflects a shift in institutional capital, pushing the ETH/BTC ratio above 0.030 for the first time in three months before it eased to 0.02962. However, valuation and exchange-flow metrics, crucial for confirming a sustained recovery, remain above levels seen in previous market reversals.
Ethereum ETF inflows signal institutional interest
July proved a turning point for Ethereum-focused investment products, which experienced their most robust inflows of the year. The $365.17 million net inflow represented a significant rebound after more than $1 billion in outflows across the preceding two months.
Bitcoin ETFs, conversely, recorded their weakest monthly total since their January 2024 launch. They drew just $172.43 million, highlighting a divergence in institutional preference and potential reallocation of capital within the crypto market.
Morgan Stanley Ethereum Trust enters the fray
The introduction of the Morgan Stanley Ethereum Trust (MSSE) in July contributed to Ethereum’s strong performance. The new product accumulated approximately $20 million in assets during its initial days of trading, signaling investor interest.
Morgan Stanley’s distribution network could help the MSSE reach a large pool of advisers and wealth-management clients. BlackRock’s ETHA also led Ethereum spot ETF inflows on July 30, gaining $16.2 million, as total net inflow for spot Ethereum ETFs reached $12.8 million that day.
For Bitcoin, BlackRock’s IBIT saw $183.4 million in inflows on July 30, contributing to a total US Bitcoin spot ETF net inflow of $233.1 million for the day.
Corporate treasuries choose Ethereum accumulation
Beyond ETF flows, corporate accumulation data also indicated a preference for Ethereum in July. BitMine, recognized as the largest corporate holder of Ether, increased its holdings every week, though at a slower pace.
Its Ether balance grew from about 5.70 million ETH at the end of June to 5.79 million ETH by July 26. In contrast, Strategy, the largest corporate holder of Bitcoin, made no new purchases during the month, breaking from its earlier role as a consistent Bitcoin buyer.
On-chain data signals an unconfirmed bottom
Despite increased institutional interest and price gains, on-chain data indicates that July’s rally has not yet triggered a definitive structural reversal for Ethereum. The ETH/BTC ratio, now easing to 0.02962, remains 13% lower this year and about 73% below its 2017 high of 0.11.
This stabilization near 0.02963 has stopped the decline from a multiyear low of roughly 0.028. However, it hasn’t significantly repaired Ethereum’s broader loss of value relative to Bitcoin, pointing more to a recovery from depressed levels than a complete market turnaround.
Valuation indicators below reversal thresholds
CryptoQuant’s analysis of the ETH/BTC market-value-to-realized-value (MVRV) ratio offers a clearer test of underlying market health. This metric has fallen to 0.65 from 0.95 in August 2025.
Historically, previous structural bottoms for ETH/BTC, including those in 2019 and early 2025, formed when the MVRV dropped below 0.45. Ethereum has moved away from last year’s overvaluation but hasn’t reached the deeper compression associated with past turning points.
Exchange flows show partial adjustment
Exchange-flow indicators also suggest an incomplete adjustment in market dynamics. While selling pressure has eased sharply, these metrics remain above the levels that accompanied previous ETH/BTC reversals.
The data suggests the heaviest distribution has subsided, but selling activity is still higher than what’s typically seen during periods of market exhaustion. Only two out of five key bottom indicators from CryptoQuant had reached prior reversal levels as of July 25, 2026.
Ethereum’s price around $1,950 on July 25 was also about 17% below its realized price of approximately $2,300. Historically, trading below the realized price has often coincided with market undervaluation and extended bottoming phases for the asset.
Robust network activity continues
Despite cautious signals from valuation metrics, the Ethereum network itself continues to show strong underlying activity. On-chain data from July 26 revealed a 190% surge in smart contract deployment over the past week compared to its 90-day baseline.
This sustained developer engagement and ecosystem growth could provide long-term support for Ethereum. The asset currently ranks second by market cap, with a market capitalization of $224.14 billion and a 24-hour trading volume of $6.23 billion as of August 2, 2026.
For July’s momentum to translate into a broader, sustained reversal, the ETH/BTC ratio would need to establish support above 0.030. This would need to align with valuation and exchange flow metrics continuing their trajectory toward historical bottoming ranges, signaling a more definitive market floor.