According to data from Farside Investors, the total net inflows into Ethereum exchange-traded funds (ETFs) reached a staggering $2.6 billion in December 2024. This remarkable milestone marks a significant increase in investor interest and adoption of Ether ETFs, outpacing their Bitcoin counterparts.
Ethereum ETFs Gaining Traction Against Wildly Popular Bitcoin ETFs
In November and December, Ethereum ETFs experienced eight consecutive weeks of net inflows, with a record-breaking $2.2 billion pouring in during the week of November 26, as per data from CoinShares. Although Ether ETFs still lag behind their Bitcoin counterparts, which closed out 2024 with over $35 billion in net inflows, analysts predict that this trend may reverse in 2025.
Analysts Predict a Shift in Favor of Ethereum ETFs
According to experts, the price performance of Ether could enhance ETF returns, leading to increased investor interest and adoption. Regulators permitting staking for US Ether ETFs would also contribute significantly to the growth of these funds. As Bernstein notes, "stating may come soon for US Ether ETFs."
Top Ethereum Funds
BlackRock’s iShares Ethereum Trust (ETHA) led among peers in 2024, with a significant $3.5 billion in net inflows, as per Farside Investors’ data. The Fidelity Ethereum Fund (FETH) came in second place, with $1.5 billion in net inflows.
On the other hand, Grayscale’s Ethereum Trust (ETHE), which was launched in 2017 and initially operated as a non-listed trust, experienced net outflows of over $3.6 billion in 2024. The asset manager listed the Grayscale Ethereum Mini Trust in July as a cheaper alternative to ETHE, which charges management fees of 1.5%.
Comparison with Bitcoin ETFs
Bitcoin ETFs displayed a similar dynamic in 2024, with BlackRock’s iShares Bitcoin Trust (IBIT) recording approximately $37 billion in net inflows. However, Grayscale’s Bitcoin Trust (GBTC) witnessed significant net outflows of over $20 billion.
Will Ethereum Outperform Bitcoin in 2025?
Since November, Ether has consistently outperformed its rival, Bitcoin, in crypto spot and derivatives markets, according to a December report by Bybit. Meanwhile, BTC ETFs experienced the largest net outflows ever on December 19.
Experts believe that sustained growth in network activity, particularly from the proliferation of artificial intelligence agents, could further propel Ether’s performance. Matt Hougan, Bitwise’s head of research, noted that Ethereum and Base, an Ethereum layer-2 scaling network, are "where many AI agents are currently operating."
Asset Manager VanEck Predicts a Bright Future for Ether
VanEck estimates that Ether’s spot price will reach $6,000 by the fourth quarter of 2025. This forecast underscores the growing optimism among investors and analysts about the future prospects of Ethereum.
Conclusion
The remarkable growth in net inflows into Ethereum ETFs in December 2024 marks a significant milestone in the adoption of these funds. As investor interest and confidence continue to grow, it remains to be seen whether Ether will outperform its rival, Bitcoin, in 2025.
However, analysts predict that sustained growth in network activity, enhanced price performance, and regulatory support could propel Ethereum ETFs to new heights in the coming year.