Ethereum ETFs Outshine Bitcoin with $1.85B Inflows as Hedge Funds Leverage CME Exchange for Basis Trade

Ethereum ETFs have significantly outperformed Bitcoin ETFs in weekly net inflows, securing $1.85 billion compared to Bitcoin's $72 million—a remarkable 25x difference. BlackRock's ETHA alone represents half of the $20 billion total assets in ETH ETFs, recently surpassing the $10 billion milestone.

The influx is largely attributed to hedge funds capitalizing on the basis trade, purchasing spot ETH ETFs while shorting CME futures. CME's ethereum futures open interest has surged to 2 million coins, far exceeding Bitcoin's 150,000. ETH's annualized basis on CME rose to 12%, outperforming Bitcoin's 9.4%.

Despite the disparity in ETF inflows, the ETH/BTC ratio remains stable, indicating no significant capital rotation between the two assets. The key question now is whether Ethereum's momentum will push it beyond the $4,000 mark.