The total net inflows into Ether (ETH) exchange-traded funds (ETFs) reached an impressive milestone in December, surpassing $2.6 billion according to data from Farside Investors. This surge in popularity comes at a time when ETH ETFs are gaining traction against their Bitcoin (BTC) counterparts, which have traditionally dominated the market.
Eight Straight Weeks of Net Inflows
Ether ETFs saw eight consecutive weeks of net inflows in November and December alone, including a record-breaking $2.2 billion in the week of November 26. This significant influx of capital is a testament to the growing interest in ETH as an investment opportunity.
BTC ETFs Still Dominate with Over $35 Billion in Net Inflows
Despite the impressive performance of ETH ETFs, their Bitcoin counterparts still hold a significant lead. According to Farside Investors, BTC ETFs closed out 2024 with over $35 billion in net inflows. However, analysts predict that this gap may narrow in 2025 if ETH’s price performance enhances ETF returns and regulators allow the funds to generate yields from staking.
Top Ether Funds
The top-performing Ether funds of 2024 were led by BlackRock’s iShares Ethereum Trust (ETHA), which onboarded an impressive $3.5 billion in net inflows. Fidelity Ethereum Fund (FETH) came in second with $1.5 billion in net inflows.
Grayscale Ethereum Trust: A Notable Exception
However, Grayscale’s Ethereum Trust (ETHE) experienced a significant decline, with over $3.6 billion in net outflows in 2024. This is likely due to the fund’s high management fees of 1.5%. In response, Grayscale launched the cheaper alternative, Grayscale Ethereum Mini Trust, in July.
Similar Dynamics in Bitcoin ETFs
The dynamics in Bitcoin ETFs mirror those seen in Ether ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) clocked approximately $37 billion in 2024 net inflows, while Grayscale Bitcoin Trust (GBTC) saw over $20 billion in net outflows.
Will ETH Outperform BTC 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 experienced the biggest net outflows on record on December 19. This trend could continue in 2025, with sustained growth in network activity driving Ether’s performance.
The Role of AI Agents
Matt Hougan, Bitwise’s head of research, highlighted the potential impact of artificial intelligence agents on Ether’s performance. With many AI agents currently operating on Ethereum and its layer-2 scaling network Base, Hougan believes that this could propel ETH to new heights in 2025.
VanEck Estimates ETH Spot Price to Reach $6,000 by Q4 2025
Asset manager VanEck estimates that Ether’s spot price will reach $6,000 by the fourth quarter of 2025. This prediction is based on various market trends and technical analysis.
Conclusion
The impressive net inflows into Ether ETFs in December mark a significant milestone for ETH as an investment opportunity. As the market continues to grow and evolve, it will be interesting to see how ETH performs against its BTC counterparts in 2025. With sustained growth in network activity and potential regulatory changes, the future looks bright for ETH.
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