Why Ethereum is dominating ETFs this week?

Ethereum ETFs have outperformed Bitcoin ETFs in net inflows over the last four trading days. From November 22 to November 27, Ether ETFs attracted $224.9 million, while Bitcoin ETFs gained only $35.2 million during the same timeframe.

Recently, the price of ETH rose by nearly 8% within a week, exceeding $3,590. This increase has led to strong interest in Ethereum ETFs, which significantly outpaced Bitcoin ETFs in net inflows.

Even though Bitcoin ETFs had a record month with over $6.2 billion in November, they only managed $35.2 million in inflows during the same period, impacted by notable outflows on November 25.

Interest in Ether ETFs may indicate a chance for Ethereum to catch up, as it has underperformed compared to Bitcoin and Solana in this bull market. Moreover, demand for leveraged Ether ETFs has surged by 160% since Donald Trump's election win.

The strong performance of Ethereum ETFs can be linked to several reasons. A key legal success for Ethereum's decentralized finance (DeFi) sector, particularly the Tornado Cash court case, has boosted confidence. Furthermore, there are rumors that Paul Atkins, a supporter of crypto, may take over from Gary Gensler as the head of the Securities and Exchange Commission (SEC), which could lead to better regulations for cryptocurrencies.

In summary, the recent influx of investments into Ether ETFs, surpassing those in Bitcoin ETFs, shows a growing interest in Ethereum and its DeFi sector. This trend might continue if regulations improve and ETH maintains strong market performance.