Why Is Ethereum Dominating ETFs This Week?

The Ethereum ETFs have recently outperformed their Bitcoin counterparts in terms of net inflows over the last four trading days. According to the data, Ether ETFs recorded net inflows of $224.9 million between November 22 and November 27, while Bitcoin ETFs only accumulated $35.2 million during the same period. What happened?

Ethereum ETFs Outperform Bitcoin

Recently, the price of ETH has experienced a significant rise of nearly 8% over the last seven days, reaching over $3,590. This significant increase has propelled Ethereum ETFs, which have crushed Bitcoin ETFs in terms of net inflows, recording $224.9 million in just four days!

Despite a record month with over $6.2 billion in net inflows in November, Bitcoin ETFs only saw $35.2 million in inflows during the same period, with a day of significant outflows on November 25. This contributed to their lower net inflows.

The growing interest in Ether ETFs could be seen as an opportunity for catch-up, as Ethereum has lagged behind Bitcoin and Solana (SOL) in this bullish cycle. Furthermore, demand for leveraged Ether ETFs has increased by 160% since Donald Trump’s electoral victory.

The Secrets Behind This Performance

This remarkable performance of Ethereum ETFs can be attributed to several factors. First, the key legal victory for the Ethereum decentralized finance (DeFi) ecosystem, with the success of Tornado Cash in U.S. courts. Additionally, rumors are circulating that Paul Atkins, a crypto advocate, could replace Gary Gensler at the helm of the Securities and Exchange Commission (SEC), which could create a more favorable regulatory environment for cryptocurrencies.

In summary, the recent net inflows of Ether ETFs surpassing those of Bitcoin ETFs reflect a growing interest in Ethereum and its DeFi ecosystem. This trend could continue if regulatory conditions become more favorable and if ETH keeps showing solid performance in the crypto market.