Ethereum ETFs Outperform Bitcoin ETFs: How Did $324 Million Flow In?

Ethereum ETFs have reached a net inflow of $324.4 million so far in September, outpacing Bitcoin ETFs.

Capital flowing into Ethereum ETFs surpassed Bitcoin products so far in September, despite their asset base being roughly one-sixth that of Bitcoin ETFs. According to a Bitfinex Alpha report cited by Wu Blockchain, this disparity may be driven by yield strategies where ETF positions are used as collateral in CME futures.

Bitcoin ETFs recorded a net inflow of $307.3 million during the same period. Ethereum products, meanwhile, recorded a net inflow of $196.9 million last week alone.

The tide has turned for Bitcoin ETFs. These products experienced a total of $462.7 million in net outflows over four trading days last week. Consequently, Bitcoin ETFs, which were previously a significant source of institutional demand, have shifted to the net selling side on a weekly basis.

Ethereum ETFs are being used as collateral in futures trading

Bitfinex Alpha reported that investors are building ETH ETF positions and pledging these assets as collateral for futures positions on the CME. As investors seek to generate yield through these transactions, interest in Ethereum ETFs appears stronger compared to Bitcoin products.

In this strategy, the higher base yield offered by Ethereum products, combined with potential gains from Ethereum staking, may be a driving factor.

Bitfinex Alpha expects Ether to maintain the $2,432 support level seen on September 11 during any pullbacks.