Disclaimer: This post contains thoughts on crypto, a volatile and risky asset class. It is not investment advice, and you should do your own research. All information is for educational purposes only. Please don’t take risks with money you’re not willing to lose.

July’s tape favored rotation over euphoria as Bitcoin quietly notched new all-time highs and leadership broadened across L1s and perps venues. The mood shifted from headline chasing to flow driven, with liquidity migrating back to the majors and onchain activity firming where it actually matters.

Policy risk eased at the margin in the US, stablecoin rails kept deepening, and crypto equities found real sponsorship. Ethereum reclaimed mindshare as institutions widened beyond a BTC-only diet, and the memecoin economy continued to operate like an actual business rather than a passing fad (PUMP). Taken together, the market continued to show maturity, where structural flows set the path and retail follows.

Macro

Spot ETF flows and policy optics set the tone. Mid-month, Bitcoin printed new ATHs above roughly $123k as the dollar softened and Washington’s ‘Crypto Week’ advanced several pro-crypto bills through the House, keeping the policy backdrop constructive for risk.

Flows did the heavy lifting. By late July, digital-asset funds had taken in about $11.2b month-to-date, on pace for a record month. The baton moved to ETH as US spot ETH ETFs logged consecutive daily records around July 16–17, driving a clear ETH/BTC rotation and a dip in Bitcoin dominance. At the same time, BTC ETFs posted multiple $1b net inflow days meaning this wasn’t necessarily a zero-sum migration, but more a broadening of participation.

Under the hood, market structure looked healthy. BTC’s run to new highs came alongside moderating basis and still-elevated perp funding as opposed to a blowoff top. The surge in ETH ETF demand aligned with allocators leaning into yield-bearing, onchain activity and balance sheet adoption beyond BTC.

Narratives

Spot ETF demand stayed strong. Bitcoin funds drew roughly $5.9b while ether funds took in about $4.7b, helping ETH rally ~50% and close the gap with BTC. Allocators treated ETH as more than beta, with tokenization and stablecoin throughput on Ethereum doing real work.

Tokenized stocks and ETF pilots advanced on public rails across Ethereum mainnet and L2s. Since Ethereum already carries most stablecoin value transfer and a large share of DeFi TVL, those pilots found a natural home.

Digital Asset Treasury Companies added another buyer cohort. VanEck tracks eight ETH-focused DATs holding ~1.46m ETH, led by Bitmine Immersion at ~625k. Include corporate treasuries and listed products and institutions now control ~8.2m ETH, or ~6.8% of supply. Matching Bitcoin’s institutional share would require further scaling, which implies runway.

Stablecoin rails also kept integrating with TradFi as Visa and FIS expanded USDC programs across networks and partners. It may not move price day to day, but it reinforces steady demand for the assets that secure those rails.

BTC’s ATH ultimately grabbed the headline, yet ETF flows, tokenization pilots, and DAT balance sheets go a long way toward explaining ETH’s resurgence.

Policy

Washington continued to push policy and regulation re digital assets. The House advanced a slate of crypto items during ‘Crypto Week’, including the stablecoin framework (GENIUS Act), the CLARITY Act for day-to-day use, and an anti-CBDC bill, signaling a friendlier posture out of the lower chamber.

Momentum turned into votes. On July 17, the House passed a comprehensive stablecoin bill that would require 1:1 backing and formal licensing, setting the stage for negotiations with the Senate and the White House. This comes as a leap towards dollar onchain clarity.

The SEC also cleared in-kind creations and redemptions for spot bitcoin and ether funds, a plumbing change that matters for spreads and primary market efficiency. Exchanges also filed for generic crypto fund standards that could speed future approvals. These steps should improve ETF liquidity and reduce frictions that kept some allocators on the sidelines.

Net-net, the policy backdrop boosted July’s flow pattern. Clearer rules around stablecoins and more efficient ETF mechanics lowered friction just as institutions rotated beyond merely BTC. That in combination with a newfound DAT bid kept demand steady.

Portfolio Update

Any month with new Bitcoin highs is a good month. At the same time, aside from the renewed ETH bid, alts remained relatively flat with what still feels like little retail demand (euphoria). Progress surrounding policy and regulation, thereby increasing institutional interest continues to be the primary trend, which bodes overwhelmingly well for the long-term success of crypto. Aligned with my recent analysis of the PUMP launch, I’ve slowly been sizing into a spot position. Watching ETF flow stamina, basis/funding heating up, and whether the novel DATs remain sustainable.