The crypto market is buzzing with excitement as the SEC’s approval of in-kind redemptions for Bitcoin and Ethereum ETFs has triggered a massive $11.2 billion inflow in July. Meanwhile, XRP is stealing the spotlight with $189 million in net inflows, surpassing Bitcoin. Here’s what you need to know.
SEC Approves In-Kind Redemptions for Bitcoin and Ethereum ETFs
The U.S. Securities and Exchange Commission (SEC) has given the green light to in-kind redemptions for spot Bitcoin and Ethereum ETFs. This move allows authorized participants to exchange physical cryptocurrency for ETF shares, streamlining operations for institutional investors. Key benefits include:
- Enhanced liquidity and efficiency
- Reduced transaction costs
- Greater integration with traditional finance
Ethereum ETFs See Record $11.2B Inflows
Ethereum ETFs have shattered records with $11.2 billion in inflows for July, the highest since their launch. Ethereum’s price surged to a 2025 high of $3,848, driven by:
- Increased staking activities by institutions
- Robust derivatives market participation ($56B open interest)
- Growing mainstream adoption
XRP Outperforms Bitcoin with $189M Net Inflows
In a surprising turn, XRP-based ETFs captured $300 million in net inflows, claiming 52% of the crypto ETF market share. XRP’s $189 million inflow last week dwarfed Bitcoin’s $175 million outflow, signaling a shift in investor sentiment.
Bitcoin’s Mixed Signals: Price Holds but Outflows Persist
Despite maintaining a price above $118,000, Bitcoin saw a $175 million outflow in institutional holdings. Satoshi Nakamoto’s untouched 1.1 million BTC now values over $130 billion, highlighting Bitcoin’s long-term appeal amid short-term volatility.
What’s Next for the Crypto Market?
With $7.6 billion flowing into digital assets in July, surpassing December 2024’s record, the crypto market is at a pivotal moment. Key factors to watch:
- BlackRock’s potential staking services expansion
- Ongoing SEC enforcement actions
- Macroeconomic risks
FAQs
What are in-kind redemptions for ETFs?
In-kind redemptions allow authorized participants to exchange physical cryptocurrency for ETF shares, bypassing cash transactions for greater efficiency.
Why did XRP outperform Bitcoin?
XRP’s $189 million net inflows outpaced Bitcoin due to growing institutional adoption and market share gains in crypto ETFs.
What drove Ethereum’s price to $3,848?
Record ETF inflows, staking activities, and robust derivatives market participation fueled Ethereum’s rally.
Is Bitcoin losing its dominance?
While Bitcoin faced outflows, its long-term value remains strong, with Satoshi’s holdings now worth over $130 billion.
