Capital flow data for US investment products points to a shift in market momentum. Last week, spot Ethereum ETF products recorded net inflows of $105.44 million. Over the same period, Bitcoin ETFs only managed to attract $75.67 million. This marks the first time in recent memory that Ethereum has outpaced Bitcoin in weekly ETF inflows.
Amid flat crypto market sentiment, this tens-of-millions-of-dollars gap provides a notable signal. Stronger capital inflows into Ethereum open up the possibility of institutional rotation, with major players appearing to shift portions of their capital from Bitcoin to Ethereum.
Next-tier assets also absorbed remaining institutional liquidity. A Cointelegraph report noted that Solana-based investment instruments saw inflows of $948,210, while XRP-linked products attracted $6.78 million.
This renewed influx of capital coincides with rebounding activity across centralized exchanges. CoinGecko data reveals that spot trading volume across the top 10 centralized exchanges increased by 15.3% throughout June. This surge pushed total trading volume above $1.11 trillion, marking the first monthly gain after five consecutive months of declines.
Real-World Assets and Prediction Markets Draw Capital
Capital rotation is evidently not limited to layer-1 coins. The same report noted new records in the real-world asset sector, where perpetual contract trading volume for this asset category hit an all-time high of $311 billion.
A similar trend extended to tokenized equities. The market capitalization of stocks issued on blockchain broke a new record at $2.3 billion. Ethereum maintained its strong dominance in tokenized stock issuance with a 34% market share, followed by BNB Chain at 30% and Solana securing 23%.
Beyond traditional investment instruments brought onto blockchain, prediction markets set records of their own. Platform Polymarket logged its highest-ever transaction volume driven by sports betting contracts. In just a single market category predicting World Cup tournament winners, the platform generated trading volume surpassing $3.3 billion.
What Remains Unanswered
This combination of data reflects a market diversifying its risk. While Bitcoin lagged behind Ethereum in the US ETF market, billions of other dollars flowed into tokenized equities and sports prediction contracts. Capital is no longer simply pooling into one instrument, but rather pursuing more specific utility.
The shifting capital allocation between the two largest networks, coupled with expanding real-world asset volumes, suggests institutions are beginning to differentiate between investment layers. Whether this rotation toward Ethereum is merely a one-week anomaly or the start of a new dominant trend, upcoming ETF figures will tell.
Reported by @Cointelegraph on X.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
