Ether exchange-traded funds (ETFs) have seen more money from investors than their Bitcoin counterparts since Friday, Nov. 22, as Ethereum’s decentralized finance (DeFi) ecosystem scored a key victory in court this week.
The spot Ether ETFs have taken in $224.9 million in net inflows over the last four trading days between Nov. 22-27, while the spot Bitcoin ETFs tallied $35.2 million in net inflows over the same timeframe, Farside Investors data shows.
It follows a nearly 8% Ether (ETH) price rally to over $3,590 over the past seven days.
One industry executive has attributed the price gain to Ethereum-based Tornado Cash’s recent court victory, along with reports that crypto advocate Paul Atkins could replace Gary Gensler and lead a more crypto-friendly Securities and Exchange Commission.
Spot Ether ETF flows since Nov. 11. Source: Farside Investors
Depending on how the Nov. 29 trading day goes, it could be the first week that the US Ether funds beat spot Bitcoin ETFs in net inflow.
ETH to BTC price ratio rises
Over the past seven days, Ethereum has increased 7.7% to $3,590 while Bitcoin (BTC) has fallen 2% to $96,780 — bringing the ETH to BTC price ratio back up to 0.037 BTC.
But despite the recent slowdown, spot Bitcoin ETFs have still had a record-breaking month with more than $6.2 billion of net inflows in November — which includes an eye-popping $3.1 billion in inflows last week.
10x Research Founder Markus Thielen says crypto privacy mixer Tornado Cash’s partial win in the United States courts likely contributed to Ethereum’s price rally as it is the dominant decentralized finance (DeFi) chain.
Reports that former SEC commissioner and crypto advocate Paul Atkins is now the frontrunner to replace Gary Gensler as the SEC’s Chair may have also benefited Ethereum, Thielen explained.
“This underperformance was previously justified before the U.S. Presidential election, but with expectations of a more favorable regulatory environment, it now presents a potential opportunity.”
President-Elect Donald Trump and his sons would benefit from a more robust DeFi ecosystem because of their involvement in DeFi protocol World Liberty Financial, Thielen said.
“[This] sends a strong signal of a potential DeFi renaissance under a Trump presidency.”
Ethereum could also be viewed as a “catch-up trade” as it has lagged behind Bitcoin and Solana (SOL) so far in this bull cycle, Thielen added.
Meanwhile, leveraged spot Ether ETF demand has increased 160% since Trump’s election victory, K33 Research noted on Nov. 28.
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