• Bitwise CIO forecasts up to $10 billion in Ethereum ETF inflows for H2 2025, fueled by increasing institutional adoption and Ethereum’s tokenized stock initiatives.
• Ethereum's growing role in tokenized stocks, along with partnerships from major firms like PayPal and Robinhood, solidifies its position as a foundational layer for the digital economy.
• Ethereum's recent upgrades and strong on-chain fundamentals contribute to renewed investor confidence, making it a compelling alternative to Bitcoin for institutional portfolios.

Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee to read how Ethereum (ETH) may enter a new phase. While attention has often shifted elsewhere, a surge in capital, institutional adoption, and bullish narratives suggests something deeper is unfolding.

Crypto News of the Day: Ethereum ETFs Drive Demand Amid Surging On-Chain Momentum

Ethereum is poised for a massive influx of institutional capital, according to Bitwise Chief Investment Officer Matt Hougan. Hougan projected up to $10 billion in inflows into Ethereum ETFs (exchange-traded funds) in H2 2025.

Flows into Ethereum ETFs are going to accelerate significantly in H2. The combination of stablecoins & stocks moving over Ethereum is an easy-to-grasp narrative for traditional investors.

ETH ETFs did $1.17. billion in flows in June. They could do $10b in H2. https://t.co/PUwFK8qKcV

— Matt Hougan (@Matt_Hougan) July 2, 2025

This bullish estimate builds on growing momentum seen in June, where Ethereum ETFs recorded $1.17 billion in inflows.

The Bitwise executive cites a combination of stablecoins and stocks moving over Ethereum, bolstering the narrative for traditional investors.

This aligns with Ethereum’s growing pivot toward tokenized stocks, which could lure traditional finance (TradFi) or institutional capital.

“Ethereum is for tokenized stocks,” the network stated.

Indeed, this statement presents as more than just a slogan, with Ethereum witnessing a surge in institutional plays. Beyond the infrastructure for decentralized finance (DeFi), the Ethereum network is now the foundational layer for real-world assets (RWAs), including equities and payment systems.

From PayPal, Visa, Stripe, and Mastercard, to Sony, Nike, Starbucks, Reddit, Fidelity, JP Morgan, and even Ernst & Young, major institutions are either building on Ethereum or integrating with its architecture.

“Ethereum is quietly becoming the foundational layer of the modern world,” one user quipped.

The latest entrant is Robinhood, which revealed plans to issue up to 200 US stocks and ETF tokens on the Ethereum-based Layer-2 (L2) network, Arbitrum (ARB).

Meanwhile, Ethereum’s on-chain fundamentals and market sentiment have strengthened with this institutional momentum. BeInCrypto reported Ethereum recording $429 million in inflows last week, on top of $124 million the week before.

The Pectra upgrade, a significant network enhancement on May 7, significantly renewed investor interest. Designed to improve validator operations and user functionality, Pectra represents a bullish fundamental that has sparked optimism about Ethereum’s long-term scalability and competitiveness.

Ethereum’s Real-World Utility Is Becoming Its Strongest Institutional Pitch

While Bitcoin has dominated headlines in recent months, largely due to BTC ETF success and macro appeal, Ethereum’s narrative is catching up.

In Hougan’s view, it may soon become the more compelling story for traditional investors, much like Bitcoin, as reported in a recent US Crypto News publication.

If the forecast holds, $10 billion in inflows would mark a watershed moment for Ethereum, further closing the gap with Bitcoin in institutional portfolios.

Data shows growing institutional interest, with increasing institutional inflows into EthDataven in the face of market volatility, spot Ethereum ETFs continue to attract capital, with BlackRock’s iShares Ethereum Trust (ETHA) leading the charge.

On July 1, ETHA recorded $54.8 million in inflows, effectively contributing to $5.5 billion since inception. It also maintained inflows for 29 of the last 30 days, effectively passing as the best-performing Ethereum funds currently in the market.

Beyond ETF issuers, Nasdaq-listed Bit Digitalannouncedplans for an Ethereum treasury strategy. It will raise $162.9 million by issuing 86.25 million shares and using the proceeds tobuy more Ethereum. The firm also announced a transition from Bitcoin mining to an Ethereum-focused strategy.

Elsewhere, analysts continue to hold out hope that continued strong inflows into spot Ethereum ETFs could pave the way for staking features for the existing Ethereum ETFs in the market.

Chart of the Day

Byte-Sized Alpha

Here’s a summary of more US crypto news to follow today:

• Public firms outpace ETFs in Bitcoin accumulation for the third straight quarter.
• Arizona governor vetoes third Bitcoin reserve bill, citing local law enforcement concerns.
• XRP price faces challenges despite 89% chance for ETF approval odds on Polymarket.
• Robinhood’s tokenized stocks stir debate: Are they a catalyst for competition for altcoins?
• Google interest at cycle lows—yet liquidity at 3-year highs: what’s next for Bitcoin in Q3?
• How Lido is gaining traction as Ethereum becomes a strategic reserve asset.
• Vitalik Buterin warns that growing the crypto space is not a clear good.
• Solana, Arbitrum shrug off major catalysts: Is the altcoin market flatlining?

Crypto Equities Pre-Market Overview

Company	At the Close of July 1	Pre-Market Overview
Strategy (MSTR)	$373.30	$381.50 (+2.20%)
Coinbase Global (COIN)	$335.33	$340.68 (+1.60%)
Galaxy Digital Holdings (GLXY)	$21.31	$21.79 (+2.25%)
MARA Holdings (MARA)	$15.70	$16.02 (+2.04%)
Riot Platforms (RIOT)	$11.27	$11.53 (+2.31%)
Core Scientific (CORZ)	$17.25	$17.22 (-0.17%)