Ethereum spot exchange-traded funds posted their strongest month since October 2025, pulling in $365.17 million in July. But the momentum stalled hard in the final week — inflows dropped 74% after the Federal Reserve held interest rates steady on July 29, and three regional presidents voted for a hike.
Fed holds, dissenters push for hike
The Federal Reserve voted 9-3 on July 29 to keep the federal funds rate at 3.50%-3.75%. The three dissenters — Beth Hammack, Neel Kashkari, and Lorie Logan — all wanted a quarter-point increase. Fed Chair Kevin Warsh said after the decision: '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.'
Markets now price in a 64% chance of a quarter-point hike at the September meeting. That's up from about 50% a month ago. The dissenting votes — the most in a single meeting since 2022 — suggest internal pressure to tighten is building.
Bitcoin ETFs snap buying streak
Bitcoin ETFs shed $61.53 million during that same final week of July, breaking three straight weeks of net buying. The outflows came as BTC prices slipped from a local high. Hyperliquid (HYPE) products also bled for a third consecutive week, losing $14.75 million. The rotation out of risk assets was broad.
XRP ETFs cross $1.5 billion cumulative
Not everything was red. XRP ETFs added $14.86 million in the week, pushing cumulative inflows past $1.5 billion since launch. The asset continues to attract steady institutional interest even as broader crypto ETF flows waver.
The next FOMC meeting is scheduled for September 15-16. If the Fed delivers the quarter-point hike markets are betting on, crypto ETFs could face another headwind. For now, the July data shows how quickly sentiment can shift when monetary policy uncertainty returns. The dissenters' votes make the September decision anything but a foregone conclusion.
