Significant interest in Ethereum ETFs has revealed that investors are shifting from Bitcoin to Ether. According to data from Farside Investors, this month saw a $393 million inflow into nine Ether ETFs trading in the US, while Bitcoin ETFs experienced a $376 million outflow.

Cryptocurrency investors have started redirecting their funds from Bitcoin to Ethereum in recent times. A notable surge in demand for Ether exchange-traded funds (ETFs) has been observed ahead of Ethereum’s (ETH) core network upgrade called the Pectra enhancement. In the US, a total of $393 million flowed into spot Ethereum ETFs this month, whereas Bitcoin ETFs witnessed an outflow of $376 million. Experts believe that this trend is setting a positive stage for ETH.

Ether ETFs listed in the US recorded a record net inflow of $393 million in February, according to Farside Investors’ data. This figure is about seven times the size of inflows seen in January. The intense demand for Ethereum ETFs stood out as the funds experienced outflows in just two trading days.

On the contrary, Bitcoin ETFs saw an outflow of $376 million. While Bitcoin ETFs recorded inflows in just four trading days, investors preferred to reduce their BTC positions on the remaining days. The inability of Bitcoin to surpass the $100,000 level and volatile price movements influenced investors to change their course.

With the increasing interest in Ethereum, ETF investors are also actively utilizing the “carry trade” strategy. In this strategy, investors purchase Ethereum ETFs while simultaneously taking short positions in ETH futures to create arbitrage opportunities. Moreover, some investors are entering Ethereum ETFs solely based on bullish expectations.

Despite this shift, Ethereum’s price is yet to provide a clear response. Following a sharp drop on February 3, ETH has been trading within a narrow range of $2,600-$2,800. Similarly, Bitcoin’s value lingering below $100,000 is causing uncertainty among investors.

One of the main reasons for the growing interest in Ethereum is the anticipated Pectra upgrade scheduled for April 8. This upgrade is expected to enhance transaction speeds, improve staking mechanisms, and increase overall efficiency on the Ethereum network.

Nick Forster, the founder of the decentralized Derive.xyz options platform, states that with the Pectra upgrade, Ethereum can better compete with rival Layer 1 blockchains like Solana. Forster mentioned, “Ethereum’s fundamentals appear solid. The Pectra upgrade on April 8 will offer significant improvements to the network, which may attract investors with faster transactions and enhanced staking mechanisms.”

Additionally, efforts by Ethereum’s co-founder Vitalik Buterin to increase the Layer 1 gas limit by 10 times are seen as critical for the network’s scalability. Furthermore, the Ethereum Foundation’s provision of a $120 million fund for decentralized finance (DeFi) projects indicates growth within the ecosystem.

Analysts suggest that by the end of the first quarter of the year, there is a 30.51% chance of Ethereum surpassing the $3,000 mark. This percentage was at 28.42% last week and could increase further if the strong demand for Ethereum ETFs continues.