A Bitfinex analyst said Ethereum’s recent strength against Bitcoin may be driven less by outright directional buying and more by cash-and-carry style positioning. The analyst said traders may be buying ETH exchange-traded funds as collateral while simultaneously trading CME futures to capture yield, a setup that could help explain why ETH ETFs have recently seen stronger inflows than BTC ETFs. The note also pointed to a sizable short squeeze in Ethereum last Friday, estimated at about $255 million, compared with roughly $172 million in Bitcoin short liquidations over the same period. In the analyst’s view, that dynamic matters for interpreting recent ETF demand. Until the market shows more spot buying that does not depend on short-squeeze activity, the current strength in ETH ETF flows is more likely to reflect portfolio positioning and arbitrage-related allocation than a broad capital rotation into ETH.
On Sept. 15, a Bitfinex analyst said Ethereum’s recent outperformance versus Bitcoin may have been driven more by 「cash and arbitrage」 strategies than by outright directional buying.
According to the analyst, traders may be purchasing ETH exchange-traded funds as collateral while trading CME futures to earn carry. That structure could help explain why ETH ETFs have recently attracted stronger inflows than BTC ETFs.
ETH short squeeze topped Bitcoin over the same period
The analyst also pointed to a roughly $255 million short squeeze in ETH last Friday, above about $172 million in BTC short liquidations during the same period.
Based on that setup, the analyst said strong demand for ETH ETFs is more likely to reflect positioning rather than a full shift of capital into ETH, at least until more spot buying emerges without relying on short-squeeze dynamics.
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