In a significant development for the cryptocurrency market, total net inflows into Ethereum (ETH) exchange-traded funds (ETFs) surpassed $2.6 billion in December. This marks a substantial milestone for ETH ETFs, which have been gaining traction against their popular Bitcoin (BTC) counterparts.
Eight Straight Weeks of Net Inflows
According to data from Farside Investors, Ether ETFs experienced eight consecutive weeks of net inflows in November and December. Notably, the week of November 26 saw a record-breaking $2.2 billion in net inflows. This trend is likely driven by increasing investor confidence in ETH’s potential for growth.
BTC ETFs Still Lead the Pack
While Ether ETFs have made significant strides, Bitcoin ETFs still dominate the market with upward of $35 billion in net inflows in 2024. However, analysts suggest that this gap could narrow in 2025, particularly if ETH’s price performance improves and regulators allow ETH ETFs to generate yields from staking.
Top Performing Ether Funds
Among the top performing Ether funds, BlackRock’s iShares Ethereum Trust (ETHA) led the pack with net inflows of upward of $3.5 billion in 2024. Fidelity Ethereum Fund (FETH) followed closely behind with $1.5 billion in net inflows.
Grayscale’s ETHE: A Cheaper Alternative?
Notably, Grayscale’s ETHE experienced significant outflows, totaling over $3.6 billion in 2024. This is despite its initial success when launched as a non-listed trust in 2017. In July, the asset manager listed a cheaper alternative, Grayscale Ethereum Mini Trust, which may be contributing to the decline.
Will Ether Outperform Bitcoin ETFs in 2025?
Since November, ETH has consistently outperformed BTC in crypto spot and derivatives markets, according to a December report by Bybit. Meanwhile, BTC ETFs saw their largest net outflows ever on December 19. Sustained growth in network activity, particularly from the proliferation of artificial intelligence agents, could further propel Ether’s performance.
Matt Hougan Weighs In
In an interview with Cointelegraph, Matt Hougan, Bitwise’s head of research, highlighted the potential for sustained growth in ETH’s price. He noted that Ethereum and Base, an Ethereum layer-2 scaling network, are "where many AI agents are currently operating." This growing adoption could contribute to increased demand for Ether.
VanEck Predicts $6,000 Price Target
Asset manager VanEck estimates that Ether’s spot price will reach $6,000 by the fourth quarter of 2025. While this is a significant prediction, it remains to be seen whether ETH ETFs can outperform their Bitcoin counterparts in the coming year.
Conclusion
The increasing popularity of ETH ETFs is a clear indication of growing investor confidence in Ethereum’s potential for growth. As regulators continue to allow yields from staking, we may see a reversal in fortunes for BTC ETFs. With sustained growth in network activity and increasing adoption of AI agents, Ether is poised for continued success in 2025.
Sources:
- Farside Investors
- CoinShares
- Bybit
Related Articles:
- Staking may come soon for US Ether ETFs: Bernstein
- Top Ether funds
Subscribe to the Markets Outlook Newsletter
Get critical insights to spot investment opportunities, mitigate risks, and refine your trading strategies. Delivered every Monday.
By subscribing, you agree to our Terms of Service and Privacy Policy.
