Ethereum ETFs Pull $1.85B in Weekly Inflows, Leaving Bitcoin in the Dust
ETH ETFs attracted $1.85B last week—25 times more than Bitcoin—driven by basis trades and treasury demand.
Ethereum [ETH] has flipped the script on Bitcoin [BTC]—at least in the ETF arena. From July 21 to 25, ETH-based exchange-traded funds attracted an eye-popping $1.85 billion in net inflows, compared to a modest $72 million for their BTC counterparts. That’s a 25-to-1 lead, and it’s raising eyebrows across traditional and crypto markets alike.
The lion’s share of ETH ETF demand came from institutional players engaging in what’s known as the basis trade: buying spot ETH via ETFs while simultaneously shorting ETH futures on the Chicago Mercantile Exchange (CME). With ETH futures open interest now near 2 million coins—versus just 150,000 for BTC—this strategy appears to be surging in popularity.
CME data supports this thesis. The annualized basis on ETH futures surged from 8% to nearly 12% in just a week. For comparison, Bitcoin’s basis peaked at only 9.4%. That spread is enough to incentivize hedge funds to pile in, especially when staking yields on ETH sit at a relatively tame 3%.
BlackRock’s ETHA ETF played a major role in this wave of activity. Having surpassed $10 billion in assets under management, it now accounts for half of all ETH ETF capital—demonstrating just how aggressively Wall Street is positioning for ETH-centric plays.
Yet, surprisingly, this massive inflow didn’t shift the ETH/BTC ratio significantly. While last week’s 28% rally suggested capital rotation from BTC to ETH, the current week remained flat. That muted performance also weighed on altcoins, which often rely on ETH momentum for broader rallies.
Still, not all the demand appears to be driven by arbitrage. Spot buying has also picked up, particularly from treasury firms anticipating long-term value in Ethereum's role in stablecoin infrastructure and real-world asset tokenization.
Cathie Wood of Ark Invest weighed in, noting that much of the recent ETH unstaking trend may reflect demand from these treasury players chasing potentially 2x returns via basis trade or ETH exposure. Coinbase analysts echoed the sentiment, arguing this isn’t an exit—but a rotation. “This paints a picture of a market reallocating capital in response to shifting yield opportunities,” they stated.
With ETH trading around $3,700 and bullish sentiment building, the $4,000 mark could be tested again soon. But whether the rally is driven by speculation or structural demand, one thing is clear: Ethereum is winning the ETF game—for now.
