Ether ETFs take the lead over Bitcoin amid Ethereum's latest rise.

Since Friday, Nov. 22, Ether exchange-traded funds (ETFs) have drawn significantly more investor interest than Bitcoin ETFs, coinciding with a major legal win for Ethereum’s decentralized finance (DeFi) ecosystem.

Between Nov. 22-27, spot Ether ETFs recorded $224.9 million in net inflows, compared to $35.2 million for spot Bitcoin ETFs, according to data from Farside Investors. The disparity stems primarily from a significant outflow in Bitcoin ETFs on Nov. 25.

This trend aligns with an 8% rally in Ether’s price, which surged to over $3,590 in the past week.

An industry expert attributed Ethereum’s price increase to two key developments: a court ruling in favor of Tornado Cash, a privacy mixer on Ethereum, and speculation that crypto advocate Paul Atkins may replace Gary Gensler as Chair of the Securities and Exchange Commission (SEC), potentially fostering a more crypto-friendly regulatory environment. 

Depending on the outcome of trading on Nov. 29, it could mark the first time U.S. Ether ETFs surpass spot Bitcoin ETFs in weekly net inflows.

Ethereum’s price has risen 7.7% over the past week, reaching $3,590, while Bitcoin has fallen 2% to $96,780. This movement has increased the ETH/BTC price ratio to 0.037 BTC.

Despite the slowdown, spot Bitcoin ETFs remain on track for a record-breaking November, with $6.2 billion in net inflows, including $3.1 billion last week alone.

Markus Thielen, founder of 10x Research, pointed to Tornado Cash’s legal victory as a contributing factor to Ethereum’s rally, given its dominance in the DeFi space. Additionally, speculation about Paul Atkins leading the SEC under a potentially crypto-friendly administration may have further boosted Ethereum.

“This previous underperformance made sense before the U.S. Presidential election, but with the possibility of a more favorable regulatory environment, Ethereum now presents a promising opportunity,” Thielen noted.

Reports also suggest President-elect Donald Trump and his family may benefit from a stronger DeFi ecosystem due to their ties to World Liberty Financial, a DeFi protocol. “This signals the potential for a DeFi revival under a Trump presidency,” Thielen added.

Ethereum’s recent rise may also reflect a "catch-up trade," as it has trailed behind Bitcoin and Solana during this bull market.

Meanwhile, demand for leveraged spot Ether ETFs has surged by 160% since Trump’s election victory, according to K33 Research.