U.S. crypto exchange-traded funds attracted a record $12.8 billion in net inflows during July, according to Bloomberg Intelligence data cited by CoinDesk, capping a month in which Bitcoin reached an all-time high of $122,408 and total spot exchange turnover surged 55% to $1.71 trillion. Decentralized exchanges also set a milestone, clearing more than $1 trillion in volume for the first time, while BlackRock’s iShares Bitcoin Trust grew to roughly $86 billion in assets. For the month, spot Bitcoin and Ether ETFs booked respective net subscriptions of $6.01 billion and $5.43 billion. The momentum abruptly reversed on 1 August. Bitcoin slid almost 3% to $112,680 and Ethereum tumbled 6.9% to $3,463, triggering about $863.6 million in forced liquidations across digital-asset markets. ETF flows flipped alongside the price drop, with Bitcoin products leaking $812.3 million—their second-largest daily outflow on record—while Ether funds shed $152.3 million. Traders pointed to a confluence of macro and policy headlines. Former President Donald Trump announced a fresh round of tariffs that weighed on risk assets, while the U.S. Securities and Exchange Commission rolled out “Project Crypto,” approved in-kind creations and redemptions for spot Bitcoin and Ether ETFs, and signaled broader support for on-chain settlement. In parallel, NYSE, Cboe and Nasdaq submitted rule frameworks seeking to list additional crypto funds. Despite the sharp pullback, July’s inflows leave institutional exposure to digital assets at its highest level to date. Market participants said the early-August outflows appear to be a “sell-the-news” reaction to the week’s regulatory blitz rather than a wholesale reversal of the longer-term allocation trend.