Ether ETFs Crowned 'ETF of the Month' for July 2025, Outpacing Bitcoin in Market Performance

Ether exchange-traded funds (ETFs) were named "ETF of the Month" for July 2025, marking a significant shift in the cryptocurrency investment landscape. According to a tweet from Bloomberg Intelligence analyst Eric Balchunas, Ether ETFs turned Bitcoin into the "second best" crypto asset during the month, with the entire category experiencing substantial growth. Balchunas stated, > "Ether ETFs Turn Bitcoin Into 'Second Best' Crypto Asset in July.. new from @SirYappityyapp and myself who awarded Ether ETFs as our ETF of the month for July. Normally we just pick one but the whole category caught fire."

The U.S. Securities and Exchange Commission (SEC) approved the first spot Ether ETFs in July 2024, following the successful launch of spot Bitcoin ETFs earlier that year. While Bitcoin ETFs quickly amassed billions in assets, initial demand for Ether ETFs was relatively muted compared to their Bitcoin counterparts. This led some analysts to question their immediate impact on the market.

However, momentum for Ether ETFs began to build significantly in the months leading up to July 2025. Reports from June 2025 indicated that Ether funds were experiencing a resurgence, with a consistent streak of positive inflows. This suggested a growing institutional and retail interest in the second-largest cryptocurrency, setting the stage for the strong performance observed in July.

The recent surge highlights a maturing crypto ETF market where Ether is increasingly recognized for its distinct value proposition beyond being merely a "digital silver" to Bitcoin's "digital gold." Despite trailing Bitcoin ETFs in overall net inflows since their inception—amassing approximately $3.9 billion compared to Bitcoin ETFs' $36 billion in their first year as of June 2025—July's performance indicates a period of exceptional outperformance for Ether-backed products. This shift could lead to further diversification within crypto investment portfolios.

Analysts anticipate continued evolution in the crypto ETF space, with Ether's recent performance potentially attracting more attention and capital. The ability of Ether ETFs to capture the "ETF of the Month" title over Bitcoin underscores a dynamic market where investor focus can rapidly pivot based on perceived value and growth opportunities. This development further solidifies the role of regulated crypto investment vehicles in mainstream finance.