Ethereum ETF inflows outpaced Bitcoin in September as traders used spot ETH positions as collateral for CME futures yield strategies.
DeFi & Yields ·
Spot Ethereum ETFs are attracting stronger inflows than Bitcoin ETFs despite holding roughly one-sixth of the assets, according to Bitfinex Alpha. Ethereum ETFs recorded $196.9 million in net inflows over the past week and $324.4 million for September to date, exceeding Bitcoin ETFs' $307.3 million in the same period. Meanwhile, Bitcoin ETFs shifted from a net buyer to a net seller, posting $462.7 million in outflows across four trading days last week.
The mechanism behind this divergence centers on collateral strategies. Traders are purchasing spot ETH positions to use as collateral backing CME futures trades, allowing them to generate yield while maintaining exposure. This structured demand for Ethereum ETF products accounts for the relative strength in inflows despite Bitcoin's larger installed base.
Bitfinex identified a potential floor for Ethereum at $2,432, marked by the September 11 daily low, which may serve as a support level during pullbacks.