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Ethereum ETF inflows surpass Bitcoin ETFs’ figures – Here are the driving factors
A recent surge in institutional interest has led to a significant influx of capital into Ethereum ETFs, outperforming their Bitcoin counterparts. According to data tracked by SoSo Value and Farside Investors, U.S Spot Ethereum ETFs recorded $420 million in inflows, significantly surpassing the $173 million seen in Bitcoin ETFs.
The driving factors behind this phenomenon have been attributed to institutional players eyeing a lucrative opportunity in CME Ethereum basis trade. This arbitrage play involves buying Ethereum in the spot market and shorting it on the futures side, allowing for the capture of the difference (yield or basis). While this is not unique to either asset, the analysts from Coinbase note that the CME ETH basis yield surged as high as 16%, significantly outperforming the CME BTC basis trade which fluctuated around 10%.
The disparity in yields has led many institutional players to flock towards Ethereum ETFs, as they seek to capitalize on this opportunity. Furthermore, open interest rates (OI) for Ethereum Futures have seen a significant surge since November 2024, reaching 1.13 million ETH by early February 2025. In contrast, CME BTC futures recorded stagnant inflows over the same period.
While some may attribute this phenomenon to the recent de-leveraging event in the Ethereum market, analysts suggest that institutional players are primarily driven by the aforementioned basis trade and open interest rates.
