US Ether ETFs Draw $197 Million, but Flows Reflect Arbitrage Positioning Rather Than Fresh Demand
Summary
- Bitfinex said US Ether (ETH) ETFs drew $197 million in inflows last week.
- Bitfinex analysts said the flows were driven more by the buildout of spot-futures arbitrage positions than by fresh buying demand.
- Bitfinex said such trading makes it difficult to conclude from ETF inflows alone that directional buying demand for Ether has strengthened.
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US Ether exchange-traded funds drew $197 million in inflows last week, but the money should be viewed as arbitrage positioning rather than fresh spot demand, Bitfinex said.
Bitfinex wrote on X, formerly Twitter, on September 15 that US Ether ETFs attracted $197 million of inflows last week.
Bitfinex analysts said the funds were driven more by the buildout of spot-futures arbitrage positions than by new buying demand. Investors are holding ETF shares while using Chicago Mercantile Exchange, or CME, Ether futures to profit from the gap between spot and futures prices.
The exchange said that means ETF inflows alone are not enough to conclude that directional buying demand for Ether has strengthened.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.