Ethereum (ETH) spot ETFs recorded their strongest month since October 2025. Yet the ending week of July raises concerns about whether institutional appetite is already fading.

Inflows dropped 74% in the final week as the Federal Reserve held rates steady. The pullback raises a key question over whether the demand will carry into August.

Ethereum ETF Inflows Hit 9-Month High Before Buyers Retreat

Ethereum funds attracted $365.17 million in July, their best showing in 9 months, per SoSoValue. The total came after back-to-back redemptions of $540.88 million in May and $528.99 million in June.

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The recovery lost steam fast, though. Weekly inflows collapsed from $103.9 million to $27.42 million in the week ending July 31.

Price action offered little help. ETH touched $1,967 on July 27, its highest level in nearly two months, before sliding to about $1,863 by Friday, CoinGecko data shows.

Demand also slowed across other ETF products. Bitcoin (BTC) funds shed $61.53 million during the week, snapping three straight weeks of net buying. 

Hyperliquid (HYPE) products bled for a third consecutive week, losing $14.75 million. XRP (XRP) ETFs added $14.86 million, pushing cumulative inflows past $1.5 billion.

Fed Hold and Hike Odds Put August Demand in Question

Macro caution appears central to the retreat. The Federal Reserve voted 9-3 on July 29 to keep the interest rate at 3.50%-3.75%. 

Three regional presidents, Beth Hammack, Neel Kashkari, and Lorie Logan, dissented in favor of a hike with inflation still above target. Markets now price in a 64% chance of a quarter-point hike in September, keeping tightening risk alive for risk assets.

“I want to stress, of course, that decisions by this committee matter a great deal, and where necessary and appropriate, we will not hesitate to act,” Fed Chair Kevin Warsh said.

If investors stay risk-off into August, the late-July slowdown may extend and erase the month’s progress. However, a revival in demand would confirm July’s rebound as the start of a broader recovery rather than a one-month bounce. The Fed’s Jackson Hole symposium in late August may offer the next signal.

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Source: BeInCrypto