water is insoluble in petrol, but soluble in ethanol. This water/ethanol mixture then sinks to the bottom of the tank and the water content causes corrosion in the bottom of steel tanks etc.
So although the ethanol itself doesn't directly cause corrosion, it causes the conditions that can.
When I was a boy

we used to occasionally throw a bottle of metho in the tank every so often with the idea that it helped remove the water that was often in the petrol in small quantities. Perhaps it wasn't such a good idea