The latest data shows that in July 2025, the U.S. encryption ETF market experienced unprecedented prosperity, with net inflows reaching as high as $12.8 billion, setting a historical record. This astonishing figure means an average daily net inflow of about $600 million, nearly double the typical level for encryption ETFs.

It is worth noting that, apart from a few products converted from trusts, all encryption ETFs have seen inflows of funds. Even more remarkable is that the total inflow of these encryption ETFs has surpassed that of any single ETF product, including Vanguard VOO. In this wave, the investment enthusiasm for Bitcoin ETFs and Ethereum ETFs is comparable, both sharing this round of funding feast.

At the same time, traditional financial markets also show an interesting contrast. During the same period, the performance of small-cap stocks ETF has been relatively sluggish, ranking at the bottom of the fund inflow list. This phenomenon reflects a clear shift in investor preferences.

The reasons can mainly be summarized as follows:

Firstly, the attitude of institutional investors has undergone a significant shift. Mainstream financial institutions, pension funds, and high-net-worth clients are increasingly recognizing Bitcoin and Ethereum, with a large amount of funds flowing into the cryptocurrency market through ETF channels.

Secondly, the maturity and reliability of ETF products themselves have greatly improved. Although the room for speculation has shrunk, their convenience, clear regulatory framework, and strong legitimacy make them the preferred tool for large investors.

Furthermore, investors' risk preferences are changing. Against the backdrop of increasing macroeconomic uncertainty, traditional small-cap or growth stocks may face pressure from capital outflows, while cryptocurrency ETFs are gradually being seen as an emerging safe-haven option.

Finally, the overall scale of the encryption currency industry has reached a new height. With the continuous maturity and expansion of the market, the funding scale of encryption currency ETFs can now rival that of traditional ETF products, marking encryption currency investment as an important component of the mainstream financial market.

This series of changes not only reflects the rapid development of the encryption currency market but also indicates that the entire investment field may be undergoing a significant paradigm shift. As more investors recognize the potential of encryption assets, we may be witnessing the arrival of a new era of investment.