In December, Ether (ETH) exchange-traded funds (ETFs) recorded net inflows exceeding $2.6 billion, continuing their upward trajectory from November. This period saw Ether ETFs register eight consecutive weeks of net inflows, peaking at $2.2 billion during the week of November 26, according to Farside investors and CoinShares data. Despite this growth, Ether ETFs remain behind Bitcoin (BTC) ETFs, which concluded 2024 with more than $35 billion in net inflows. Analysts, however, anticipate a potential reversal in 2025 if Ether’s price performance boosts ETF returns and regulatory changes permit yield generation from staking.
Dominating the Ether ETF market, BlackRock’s iShares Ethereum Trust (ETHA) attracted over $3.5 billion in net inflows in 2024, with Fidelity’s Ethereum Fund (FETH) following at $1.5 billion. Conversely, Grayscale’s Ethereum Trust (ETHE) experienced approximately $3.6 billion in net outflows. Grayscale introduced the Ethereum Mini Trust as a lower-cost option in July, responding to high management fees of 1.5% on ETHE. The Bitcoin ETF landscape mirrored this trend, with BlackRock’s iShares Bitcoin Trust (IBIT) receiving around $37 billion in net inflows, while Grayscale’s Bitcoin Trust (GBTC) saw more than $20 billion in outflows.
Ether has outperformed Bitcoin in crypto markets since November, according to a report by exchange Bybit. December 19 marked record net outflows for BTC ETFs. The ongoing expansion in Ethereum’s network activity, partly due to widespread artificial intelligence adoption, might further enhance Ether’s market performance. This comes as Ether lags behind other blockchain networks like Solana in 2024, emphasized Matt Hougan, Bitwise’s head of research, noting significant AI operations on Ethereum and its layer-2 counterpart, Base.
VanEck, an asset management firm, predicts Ether’s spot price might escalate to $6,000 by late 2025, underlining optimistic long-term projections despite current disparities in ETF inflows between Ether and Bitcoin.
