Crypto ETFs Face Turbulent Week: Bitcoin and Ethereum See Major Outflows Amid Regulatory Shifts

Bitcoin and Ethereum ETFs experienced their second-worst outflows of 2025, marking a dramatic end to a week filled with significant regulatory developments in the crypto space. Ethereum's impressive 20-day inflow streak came to a halt with a $153 million pullback, while Bitcoin funds saw $812 million withdrawn, just shy of the year's record.

Regulatory Milestones and Market Reactions

The SEC made headlines by approving in-kind redemptions for Bitcoin and Ethereum ETFs, a move that allows shares to be exchanged directly for crypto assets, enhancing efficiency and price tracking. This decision was part of a broader regulatory push, including the launch of Project Crypto, aimed at modernizing securities rules for the digital age.

Despite the outflows, both cryptocurrencies ended July on a high note. Bitcoin reached a new monthly all-time high above $116,000, and Ethereum returned to $3,700, levels last seen in late 2024.

Market Movers

• Bitcoin dipped slightly, trading at $113,840.
• Ethereum saw a more significant drop, falling to $3,510.

Further Reading

• Trustless VPN signups surge as UK Online Safety Act sparks privacy rush
• You don’t realize how big July was
• How Michael Saylor Will Keep Strategy From Ever Being Liquidated of Its Bitcoin
• Coinbase’s $1.5bn revenue shows thinning volume as the ‘crypto superapp war’ wages on