The wind is changing in the universe of cryptocurrencies, and the funds quoted in the stock market (ETF) are the new scenario where this battle is fought. The capital flow is rotating from the Bitcoin ETF (BTC) towards those of Ether (ETH), replicating the historical behavior of the digital asset market.
This movement indicates the possible start of an Altseason, where alternative cryptocurrencies to Bitcoin gain prominence.
The ETF of Ether, who turn their first year in the market, record tickets of 5,250 million dollars in July, with exits of only 41 million. In contrast, Bitcoin ETFs accumulate 11,390 million in tickets, but with exits of 1,135 million.
Although BTC funds attract more capital in absolute terms, Its proportion of outputs on entries (9.96%) is significantly greater than that of ETH (0.78%). This rotation towards ETH reflects sustained confidence in the Cryptocurrency of Ethereum, which is capturing the attention of institutional investors.
In the graphics below, the capital flows have been from the BTC and ETH ETFs. Red bars represent negative net capital flows (or exits) and green bars are positive flows:
Institutional fever by Ethereum
Ether fever is not just speculative: institutions are entering strongly. More than 1.8 million ETH are in the hands of companies.
Companies such as Sharplink Gaming, Bit Digital and BTCS Inc. are issuing corporate debt to finance ETH purchases, seeking to increase their holdings.
ETHC’s appeal against BTC lies in the staking, which allows these companies to generate additional income by participating in the validation of the Ethereum Network.
This trend suggests that institutional fever by Ether comes to stay, with more and more Wall Street firms exploring this asset as a strategic reserve.
Impact on the ETF market
Both the direct corporate purchases of ETH, and the mass flow towards the ETFs of Ethereum drives Ether’s demand, raising its price. This is because these funds must buy Ether in the market to support their financial products, which impacts the demand for the asset and, consequently, in their market assessment.
From July 1 to today, July 23, The cryptocurrency rose 58%, from $ 2,400 to $ 3.800 on Mondayalthough today it lies at $ 3,500.
Meanwhile, Bitcoin slows its bullish rally but remains stable around $ 118,000, and cryptocurrencies such as ETH and XRP report higher weekly increases.
This change of focus evidence that money is rotating towards alternative cryptocurrenciesa typical pattern of the Altseasons.
Phase 3 of the Cryptocurrency Cycle
As cryptootics has reported, the market has entered phase 3 of the cryptocurrency cycle. After an initial impulse of Bitcoin towards historical maximums (phase 1), investors sought greater yields in Ether (phase 2), reducing the BTC domain.
Now, Capital flows to other criptomoneds of great capitalization, driven by ecosystem optimism.
According to the blockchain center index, the 45% of the 50 main cryptocurrencies exceeds Bitcoin’s performance. Although the 75% technical threshold is not reached to declare an Altseason, the transition signals are clear.
New ETF on the horizon
The interest in cryptocurrency ETFs does not stop. Several requests for funds from other cryptocurrencies are before the stock exchange and values commission (SEC).
Bloomberg Intelligence analysts, James Seyffart and Eric Balchunas, estimate a 95% probability of approval for XRP ETF, Solana (Sol) and Litecoin (LTC) in the second half of 2025.
Cryptocurrencies such as Dogecoin (Doge), Cardano (ADA), Polkadot (DOT), Hedera (Hbar) and Avalanche (AVAX) have 90% probability. This wave of new funds reflects the growing diversification in the cryptoactive market.
Despite the enthusiasm, only the strongest cryptocurrencies will highlight in this cycle. Capital rotation to ETH ETFs, institutional interest and requests for new funds point to a transition market.
However, the selectivity will be key: only assets with strong foundations will lead this stage, consolidating the prominence of cryptocurrencies in an increasingly dynamic ecosystem.
