Institutional interest in digital assets showed signs of stabilization in July after heavy outflows in June, Glassnode said in its Strategy Watch #7 report. Bitcoin’s net capital outflow narrowed from $17.3 billion in early July to $4.1 billion at month-end, while Ethereum’s declined from $6.1 billion to $0.8 billion and stablecoin outflows fell from $6.6 billion to $2.2 billion. U.S. spot Bitcoin ETF flows also reversed, moving from outflows of 70,400 BTC and 269,400 ETH at the start of July to inflows of 5,400 BTC and 190,800 ETH by the end of the month. As of August 27, Bitcoin was trading at $80,471, up 3.05% in 24 hours, while August Bitcoin ETF inflows had exceeded $3 billion, making it the strongest month of 2026 for the instruments, according to recent reports. Ethereum DeFi (decentralized finance) total value locked rose from $36.6 billion to $41.1 billion during July, reaching $42.1 billion on July 27, and its 30-day flow rate shifted from a $5.3 billion outflow in June to a $3.9 billion inflow in July. Bitcoin CME basis yield doubled from $74 million to $146 million, while Ethereum’s rose from $18.4 million to $58.5 million. The data suggests cautious institutional reentry and renewed demand for leveraged and market-neutral strategies, but one month of ETF inflows and DeFi recovery does not establish a lasting trend. August will be crucial in determining whether the renewed interest becomes more consistent, with the balance of risks tilting toward cautious optimism.