As we head into 2025, analysts are predicting that net inflows into Ethereum exchange-traded funds (ETFs) will continue to grow and potentially outperform Bitcoin ETFs. This trend is already underway, with seven consecutive weeks of net inflows as of December 16th, including a record-breaking $2.2 billion in the week of November 26.
Current Inflow Trend
According to data from CoinShares, Ether ETFs have seen a significant increase in net inflows over the past few months. This uptrend is expected to continue into 2025, driven by strong spot ETH price performance and potentially the introduction of staking yields in ETFs.
Staking Yields
Staking involves locking up Ethereum as collateral with a validator on the network. Stakers earn Ethereum payouts from network fees and other rewards but risk "slashing" or losing their Ethereum collateral if the validator misbehaves. As of December 20th, staking Ether earns roughly 3.35% in annualized percentage returns (APR), denominated in ETH.
Analysts’ Predictions
Nate Geraci, president of The ETF Store, believes that net inflows into ETH ETFs will continue to accelerate: "I expect inflows to accelerate from here." Geraci’s prediction is based on the current pace of inflows, which is comparable to gold ETFs.
Matt Hougan, Bitwise’s head of research, also expressed optimism about Ethereum’s performance: "[A] lot of people assume it’s happening on Solana. Actually, a lot of it is happening in the ETH ecosystem." Hougan believes that sustained growth in network activity, including from artificial intelligence agents, will drive Ether’s price upward.
Price Predictions
VanEck estimates that Ether’s spot price will reach $6,000 by the fourth quarter of 2025. This prediction is based on the Ethereum network’s expected annual free cash flow of up to $66 billion by 2030, which could drive spot ETH’s price as high as $22,000.
Regulatory Environment
The US Securities and Exchange Commission (SEC) recently approved two ETFs comprising a market-weighted index of BTC and ETH. This development creates another potential avenue for boosting ETH fund inflows.
Potential Impact of Staking
Bernstein Research predicts that staking yields will soon be introduced in US-based Ether ETFs, potentially enhancing their returns and driving further investment.
Inflow Comparison to Bitcoin
While Bitcoin ETFs saw significant net outflows on December 19th, Ethereum ETFs continue to attract investors. This divergence highlights the growing interest in Ethereum as an asset class.
Net Inflows vs. Outflows
| Asset | Week of Nov 26 | Week of Dec 16 |
| — | — | — |
| ETH | $2.2 billion (net inflows) | 7 consecutive weeks of net inflows |
| BTC | – | Biggest net outflows ever on Dec 19 |
Conclusion
The momentum behind Ether ETFs is gaining pace, with analysts predicting continued growth in 2025. As the Ethereum network continues to attract attention from investors and regulators, it’s likely that we’ll see further investment in ETH-focused funds. With sustained growth in network activity and potentially the introduction of staking yields, Ethereum’s price could continue to rise.
References
- CoinShares: Net Inflows into Ether ETFs
- Nate Geraci: X Platform Post (Dec 20)
- Staking Rewards: Annualized Percentage Returns (APR) for ETH Staking
- Bernstein Research: Report on Staking Yields in US-based Ether ETFs
