In a significant development, the total net inflows into Ether (ETH) exchange-traded funds (ETFs) surpassed $2.6 billion in December as these funds gained traction against wildly popular Bitcoin (BTC) ETFs. This surge in interest is evident from data provided by Farside Investors.
Eight Consecutive Weeks of Net Inflows for ETH ETFs
In November and December, Ether ETFs saw eight consecutive weeks of net inflows, with a record-breaking $2.2 billion in the week of November 26, according to data from CoinShares. This remarkable performance is a testament to the growing interest in Ethereum as an investment option.
Lagging Behind BTC ETFs
Despite this impressive growth, Ether ETFs still lag behind their Bitcoin counterparts, which closed out 2024 with upward of $35 billion in net inflows, according to Farside Investors. However, analysts predict that this could reverse in 2025 if ETH’s price performance improves and regulators allow the funds to generate yields from staking.
Analysts’ Predictions for 2025
According to experts, the future of Ether ETFs looks promising, especially with the potential for enhanced price performance. Matt Hougan, Bitwise’s head of research, told Cointelegraph that sustained growth in network activity, including from the proliferation of artificial intelligence agents, could further propel Ether’s performance.
Top Performing Ether Funds
BlackRock’s iShares Ethereum Trust (ETHA) led among peers, onboarding upward of $3.5 billion in 2024 net inflows, Farside said. Fidelity Ethereum Fund (FETH) notched second place with $1.5 billion in net inflows.
Grayscale’s ETHE: A Contrasting Story
On the other hand, Grayscale’s Ethereum Trust (ETHE), which was launched in 2017 as a non-listed trust, saw upward of $3.6 billion in net outflows. This is partly due to the relatively high management fees charged by Grayscale, amounting to 1.5%. In July, the asset manager listed Grayscale Ethereum Mini Trust as a cheaper alternative.
Bitcoin ETFs: A Similar Dynamic
Similar to Ether ETFs, Bitcoin ETFs also displayed a dynamic with BlackRock’s iShares Bitcoin Trust (IBIT) clocking approximately $37 billion in 2024 net inflows against more than $20 billion in net outflows from Grayscale Bitcoin Trust (GBTC).
Will ETH Outperform BTC in 2025?
With Ether outperforming Bitcoin in crypto spot and derivatives markets since November, according to a December report by Bybit, a crypto exchange, it’s possible that ETH ETFs could outperform their Bitcoin counterparts in the coming year.
A Bright Future for Ethereum
Ethereum’s performance has lagged behind rival layer-1 network Solana in 2024. However, sustained growth in network activity, including from the proliferation of artificial intelligence agents, could further propel Ether’s performance. As Hougan noted, "Ethereum and Base, an Ethereum layer-2 scaling network, are ‘where many AI agents are currently operating.’"
Estimating ETH’s Spot Price
Asset manager VanEck estimates that Ether’s spot price will reach $6,000 by the fourth quarter of 2025.
Conclusion
In conclusion, the surge in net inflows into Ether ETFs is a significant development in the world of cryptocurrency investments. With analysts predicting improved performance and potential for enhanced yields from staking, it’s possible that ETH ETFs could outperform their Bitcoin counterparts in the coming year.
