Reduction in Institutional Fund Outflows in July, ETF Rebounds at Month-End

In July, the outflow of institutional funds from digital assets slowed down, but Bitcoin, Ethereum, and stablecoins still maintained a state of net outflow. According to analysis by Glassnode, the net cash flow for Bitcoin improved from -$17.3 billion at the beginning of July to -$4.1 billion by the end of the month, while Ethereum decreased from -$6.1 billion to -$0.8 billion. Stablecoins reduced their outflow from -$6.6 billion to -$2.2 billion. ETF flows saw a net inflow of $172.4 million for Bitcoin spot ETFs in July, but on July 31, there was an outflow of $265.4 million. The total deposits in Ethereum DeFi increased from $36.6 billion to $41.1 billion, reaching $42.1 billion on July 27. CME basis revenues also increased, with Bitcoin recovering from $74 million to $146 million, and Ethereum from $18.4 million to $58.5 million. Institutional interest has become more selective, with Hyperliquid and Solana gaining attention. However, regulatory burdens still exist, as an SEC commissioner warned that on-chain vaults and lending strategies could fall under federal securities laws.