In December, Ether (ETH) exchange-traded funds (ETFs) recorded net inflows exceeding $2.6 billion, reflecting a growing interest in these financial products, despite trailing behind Bitcoin (BTC) ETFs, which amassed over $35 billion in net inflows for 2024. The data, revealed by Farside investors, also indicated that Ether ETFs experienced eight consecutive weeks of net inflows in November and December, peaking at $2.2 billion during the week of November 26, according to CoinShares.
Industry experts predict a possible reversal in 2025 if Ether’s spot price boosts ETF returns and regulatory changes enable funds to earn yields from staking. Notably, BlackRock’s iShares Ethereum Trust led the sector with over $3.5 billion in 2024 net inflows, followed by the Fidelity Ethereum Fund with $1.5 billion. However, these gains were somewhat offset by Grayscale Ethereum Trust’s net outflows of over $3.6 billion.
The scenario mirrored Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust capturing approximately $37 billion in net inflows amidst more than $20 billion in outflows from the Grayscale Bitcoin Trust. Analysts believe the Ether ETFs could outperform Bitcoin ETFs in 2025, citing Ether’s superior performance over Bitcoin in both spot and derivatives markets since November. Additionally, increased network activity, spurred by the proliferation of artificial intelligence agents on Ethereum, is expected to enhance Ether’s competitiveness. VanEck, an asset manager, anticipates Ether’s spot price reaching $6,000 by late 2025.
