Australia’s exchange-traded fund (ETF) sector has begun the new financial year with remarkable growth, reporting record net inflows of $5.82 billion in July. This figure marks the first time monthly inflows have surpassed $5 billion, representing a 65.7 per cent increase compared to the same period last year. The surge also marks the third record month for the ETF industry in 2025. This performance propelled total funds under management to a new peak of $289.2 billion, according to data from VanEck. VanEck is an investment management firm providing a diverse range of investment strategies, including ETFs, mutual funds, and institutional accounts.
Digital asset ETFs were the standout performers, particularly those focused on Ethereum, which benefited from a surge in the cryptocurrency’s spot price of over 50 per cent during July. Bitcoin also saw gains, rising by 11 per cent to close the month just under $US120,000.
Arian Neiron, Asia-Pacific chief executive at VanEck, noted that July typically sees strong inflows as investors allocate new capital and rebalance their portfolios at the start of the financial year. Dividend reinvestment plans also contributed to the increased activity. “Positive share price momentum across the board has also helped boost allocations into Australian and international equities ETFs, with the latter contributing close to half of the total net flows,” he stated.
The top-performing ETFs for the month included Monochrome Ethereum ETF, which rose by 57.9 per cent, Global X 21Shares Ethereum ETF, up 57.2 per cent, and Betashares Ethereum ETF, which saw an increase of 50.9 per cent.
