Bitfinex analyst: ETH ETF fund inflow may stem from arbitrage strategy

Bitfinex analysts believe that ETH's recent strength relative to BTC is more due to cash and arbitrage strategies rather than directional buying. Traders may buy ETH ETFs as collateral while trading CME futures to earn profits, which explains why ETH ETFs have stronger capital inflows compared to BTC ETFs. Last Friday, ETH experienced a short squeeze of approximately $255 million, surpassing BTC's short liquidation of approximately $172 million during the same period. The strong demand for ETH ETFs is reflected in position allocation before there are more spot buying orders that do not rely on bearish pressure.